Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A)

Case Solution

Juan Alcacer, Kerry Herman
Harvard Business School ()

In mid-2005, Intel is examining its options for the location of its next assembly and test facility. The short list of potential locations includes locations in China, India, Thailand, and Vietnam. Each country has its own unique benefits and risks in terms of infrastructure, governance, education, business culture, intellectual property protection, labor markets, experience working with Western companies, tax breaks, and other incentives. Intel’s general manager of assembly and testing, Brian Krzanich, must consider all of these factors, as well as Intel’s criteria for the location of the new plant, and make his recommendation to the company’s board of directors. Which country and location should Intel choose?

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