Intel invests in Vietnamese software developer

Intel Corp. (NASDAQ:INTC), in the maddening midst of what seems to be an all-out war -- again -- with rival chipmaker Advanced Micro Devices, Inc. (NYSE:AMD) in the hardware business, has just invested in a small software developer located in Vietnam, in what is being called a small but highly symbolic move by the world's largest chipmaker.

Intel Capital, the financing arm of the company, along with LBO expert and capital house Texas Pacific Group have collectively invested $36.5 million in FPT, a 6,000-person software development outfit in Hanoi, Vietnam that provides back-end operations, telecommunications and VoIP solutions to Japanese companies.

Vietnam's economy has been growing steadily recently, as the country reported economic growth of 8.4 percent in 2005 alone. Vietnam's tech market, estimated to be valued at $800 million, is growing at about 20% a year. In addition to this recent Intel-Texas Pacific investment, Intel announced plans to build a $300 million chip assembly and testing factory in Vietnam's commercial capital, Ho Chi Minh City.