Through a state-of-the-art technique for substrate processing at its assembly and testing plant, Intel has delivered millions of additional chip production sets over the past year, demanded by assembly visitors as the industry struggled with shortages of this critical component.
Keyvan Esfarjani, Intel’s executive vice president and global chief operating officer, said, “This initiative is a wonderful example of how embedded production is the foundation of Intel’s success. Our global network of factories and our ecosystem of suppliers enable a more adaptable and resilient product supply. Throughout the Beyond the Year, while substrates have been limited in the industry, our ability to leverage in-house capacity has generated more than $2 billion in additional revenue for Intel, allowing us to respond with agility to dynamic visitor demands. “
Since the beginning of the global pandemic, the growing demand for computing has placed the semiconductor industry at the epicenter of unprecedented disruptions in the supply chain. This has created a shortage of key components for chip production, adding the Ajinomoto accumulation film substrate, a foundation for almost each and every complex processor in the world.
Before a computer chip leaves the factory, it is fixed between a substrate and a heat sink to form a complete processor. This housing protects the chip and forms the electrical connections between the processor and the printed circuit board in a computer.
Among the key elements of substrates are capacitors. They decrease noise and impedance and give a constant voltage to the chip. For years, Intel has connected certain capacitors to one side of the substrate and relied on substrate vendors to repair them on the other side. Intel now attaches those parts to any aspect of the substrate at its Vietnam Assembly and Test Plant (VNAT).
To enable this capability, the VNAT team committed plant space, purchased more tools, and changed existing ones to prepare for high-volume production, which began in May 2021.
“This is the demonstration of why embedded production is a merit to Intel and our customers,” said Kim Huat Ooi, vice president and general manager of Intel Products Vietnam.
“By incorporating this capability in-house, we can meet the entire chip more than 80% faster, while freeing up substrate suppliers that have limited capacity. Over the past year, we have demonstrated that this is an evolving production process whose quality matches that of our substrate suppliers. In the future, we plan to continue to develop the capacity to apply this technique to a greater diversity of products,” Ooi added.
Intel Products Vietnam (IPV) is the largest meeting and plant in Intel’s production network. With more than 2800 workers and a total investment of $1500 million, it is the largest high-tech investment in the U. S. U. S. in Vietnam.
By the end of last year, IPV had shipped more than 3 billion computers to Intel’s international consumers since they began operations 15 years ago.
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Investment Review in Vietnam by the Ministry of Planning and Investment
Editor-in-Chief: Le Trong Minh
Deputy Editors: Bui Duc Hai, Nguyen Van Hong and Nguyen Quoc Viet
Member of the Editorial Board: Dang Tuan Khanh
Editor-in-Chief: Nguyen Chi Mai
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