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Tuesday, 26 October 2010 10:22

Intel opens China chip plant

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$2.5 billion
Chipmaker Intel has opened its first chip fab in China on Tuesday. The $2.5 billion fab is located in Dalian it was first announced back in 2007.

Intel CEO Paul Otellini told reporters that Intel has been present in China for the past quarter of a century and that it "has been investing and innovating in China with China and for China." Several weeks ago Otellini warned that the US was at risk of losing its technological edge and called on business leaders to invest in the US tech infrastructure.

The construction of the plant was plagued by delays and rumours that Intel might scale down or even scrap the project. In addition to Intel, some two dozen companies have also made substantial investments in Dalian in an effort to position themselves for cooperation with Intel. Intel has already confirmed that it will work with more than 80 suppliers in Dalian.

So, Otellini was obviously right in saying that investments in new fabs and manufacturing infrastructure generate economic growth and development, it's just that he was talking about the other side of the Pacific.

More here.

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