Case | HBS Case Collection | September 2012 (Revised December 2013)

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

by Juan Alcacer and Kerry Herman

Abstract

In mid-2005, Intel is examining its options for where to locate its next assembly and test plant. On its short list of potential sites include locations in China, India, Thailand, and Vietnam. Each country has its own unique benefits and risks related to infrastructure, governance, education, business culture, intellectual property protection, labor markets, experience working with Western firms, and tax breaks and other incentives. Intel's General Manager for Assembly and Test, Brian Krzanich, has to consider all of these factors as well as Intel's criteria for its new facility's location and make his recommendation to the company's board of directors. Which country and location should Intel choose?

Keywords: strategic positioning; Location choices; Location strategies; technology; Geographic Location; Global Strategy; Technology; Strategy; Technology Industry; United States; China; India; Thailand; Viet Nam;

Citation:

Alcacer, Juan, and Kerry Herman. "Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A)." Harvard Business School Case 713-406, September 2012. (Revised December 2013.)