Intel Corp has started building a $2.5-billion chip factory in
China at the weekend, expanding its foothold in the world's second
largest personal computer market.
Called Fab 68, the new factory will start operation in 2010 and
become the world's largest computer chipmaker's first 300mm wafer
fabrication plant in Asia and eighth globally.
The factory in Dalian, in Northeast China's Liaoning Province,
is one of the largest foreign investments in China.
"Fab 68 will have world-class infrastructure and be an integral
part of our global manufacturing network and bring us closer to our
customers and partners in China," Intel Chairman Craig Barrett said
on Saturday.
"Besides bringing advanced chipset manufacturing, Intel's
presence will help attract investment from other segments of the
integrated circuit industry to the city," Dalian Mayor Xia Deren
said.
The chip manufacturing plant will help attract more than
100-billion yuan ($13.27 billion) in investment to the port city,
which is trying to boost the growth of its IT sector, Xia said.
Fab 68, announced in March this year, is expected to use
90-nanometer technology to make computer chipset, which is the most
advanced technology approved by the US government for export to
China.
Currently, Intel makes most of its advanced microprocessors with
65-nanometer technology and plans to begin production on
next-generation 45-nanometer technology in the second half of this
year.
"It's our intention to keep this factory as advanced as the US
export law allows," factory general manager Kirby Jefferson said.
The company will keep upgrading its facility as US regulations
change.
Intel has set up two assembly and test plants in Shanghai and
Chengdu, along with research and development centers and labs in
Beijing, Shanghai and other Chinese cities.
(China Daily September 10 2007)
