Intel gets approval to build $2.5B plant in China

The Chinese government has given Intel permission to build a $2.5 billion chip-manufacturing plant in Dalian, on China's northeastern coast. According a Chinese announcement on China's NDRC (National Development and Reform Commission) website, Intel plans to build a plant with a monthly production capacity of 52,000 chips that will produce semiconductors, including microprocessors, on 300-millimeter wafers using a 90-nanometer manufacturing process. The planned plant will be the first constructed by Intel in China, and it will operate along with test and assembly plants in Shanghai and Chengdu, a city in southwestern China.

While a planned plant in Dalian that uses a 90-nanometer process technology would lag several generations behind the most advanced technology used by Intel, the plant would still rank among the most sophisticated in the world. Nonetheless, I fail to see why Intel would bother investing such a large sum if it isn't going to help them stay on top.

News source: InfoWorld

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They cant put the latest techs in China because the Chinese gov would then find out all about their technology, and of course by that time it'd all already have leaked out by employees anyways.