Thursday, March 15, 2007

Intel approval for $2.5b China chip plant

CHIP-maker Intel has been given approval from authorities to build a US$2.5 billion (A$3.2 billion) fabrication facility in China, local media reported.

China’s top economic planning agency, the National Development and Reform Commission (NDRC), said on its web site that the project to build a factory in Dalian had been approved.

Reports in the US said Intel had not yet announced its intention to build the plant and had declined to comment further.

The NDRC announcement said the Dalian Intel plant would use 90nm (nanometre) fabrication technology most commonly used in mass-production flash memory chips.

Current top of the line Intel manufacturing technology builds chips using 65nm technology, and the company will start production later this year in the US of microprocessors using 45nm technology.

Should Intel go ahead with the Dalian fabrication, the US$2.5 million investment would be one of the largest single foreign investments in the China market.

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