Intel Corporation on March
26 announced plans to build a 300-millimeter (mm) wafer fabrication facility
(fab) in the coastal Northeast China city of Dalian in Liaoning Province. The $2.5 billion investment for
the factory designated Fab 68 will become Intel's first wafer fab in Asia and
adds significant investment to Intel's existing operations in
China.
"China is our
fastest-growing major market and we believe it's critical that we invest in
markets that will provide for future growth to better serve our customers," said
Intel president and CEO Paul Otellini. "Fab 68 will be our first new wafer fab
at a new site in 15 years. Intel has been involved in China for more
than 22 years and over that time we’ve invested in excess of $1.3 billion in
assembly test facilities and research and development. This new investment will
bring our total to just under $4 billion, making Intel one of the largest
foreign investors in China."
Not since 1992 with the
construction of Fab 10 in Ireland has Intel built a fab from
the ground up at a brand new site. Construction on Fab 68 is scheduled to begin
later this year with production projected to begin in the first half of 2010.
Initial production will be dedicated to chipsets to support Intel's core
microprocessor business.
"This is one of the major
cooperative projects between China and the United States in
the area of integrated circuits manufacturing in recent years. The project will
further strengthen Intel's leadership position in the semiconductor
manufacturing in the world. At the same time, the investment in Dalian will have a positive impact to the regional economic
development and the development of integrated circuits industry in the old
industrial base of northeast China," said Zhang Xiaoqiang, vice
chairman of the National Development and Reform Commission. "We welcome Intel
and other multinational companies to invest and cooperate with
China. We support Intel's initiative
to expand and strengthen cooperation with relevant parties in a number of areas,
such as talent training, technology standards, improved information technology
for rural areas and digital health, to promote the mutual benefit and win-win of
Intel and the information industry of China, and to achieve the goal of
growing together."
Dalian Mayor Xia Deren
said, "As an open city on China's coastline, Dalian provides many geographic advantages as
well as existing infrastructure and services for foreign investment. We are very
excited Intel has chosen Dalian to build a wafer fabrication facility.
This investment will not just impact Dalian's
social and economic development, but will generate a significant and positive
impact on the economic and industrial structure in Northeast China."
When completed, Fab 68 will
become part of Intel's manufacturing network that includes eight 300mm factories
in 2010 with other fabs located in the United
States, Ireland and Israel.
Manufacturing with 300mm wafers dramatically increases the ability to produce
semiconductors at a lower cost compared with more commonly used 200mm (8-inch)
wafers. The bigger wafers lower production cost per chip while diminishing
overall use of resources. Using 300mm manufacturing technology consumes 40
percent less energy and water per chip than a 200mm wafer factory.
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