Approved by the National Development and Reform Commission
(NDRC), the world's largest computer chip manufacturer, Intel will
build a wafer fabrication plant in Northeast China's Dalian
City.
The production facility, with a designed monthly capacity of
52,000 wafers, semiconductors on which numerous integrated circuits
are manufactured, will cost US$2.5 billion, an NDRC source
said.
Intel currently operates wafer packaging and test facilities in
Shanghai and Chengdu.
Industry observers said the Dalian project would help slash
Intel's production costs for wafers, as labor and raw materials are
much cheaper in China.
The news has also been welcomed by OEMs (original equipment
manufacturers), who will have their costs cut as well.
According to a US-based market research firm, iSuppli, the sales
volume of China's wafer market was estimated at US$37 billion in
2006.
The sales volume is forecast to increase to approximately US$45
billion in 2007.
(Xinhua News Agency March 16, 2007)