皇冠体育app

Intel Corp's Chief Executive Paul Otellini delivers a speech before a singing ceremony in Beijing, March 26, 2007. Chip giant Intel said on Monday it would invest $2.5 billion to build a microchip plant in northeastern 皇冠体育app, with the production of chipsets to begin in 2010. [Reuters]

Intel Corp announced Monday it will build a $2.5 billion chip factory in 皇冠体育app, giving the U.S. company a bigger presence in the booming Chinese market and boosting Beijing's effort to attract high-tech investment.

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The factory will produce chipsets, a key component in personal computers, mobile phones and other products, Intel President and CEO Paul Otellini said at a news conference in Beijing.

The facility in the northeastern city of Dalian will be Intel's first wafer fabrication factory in Asia and its first built from scratch since 1992, reflecting 皇冠体育app's growing importance as a market for high-tech goods.

It will boost the Santa Clara, California-based, company's investments in 皇冠体育app to $4 billion.

"This project confirms and further enhances the strategic importance of 皇冠体育app in our global strategy and in the IT industry around the world," Otellini said.

"Our goal in 皇冠体育app is to support a transition from 'manufactured in 皇冠体育app' to 'innovated in 皇冠体育app,"' he said.

The factory will use the most advanced circuit etching technology that the U.S. government will permit Intel to export to 皇冠体育app at the time production begins, Otellini said.The announcement Monday came two weeks after the Chinese government let Intel's secret slip by announcing that it had granted permission to build the factory.

The Intel factory will be 皇冠体育app's biggest foreign high-tech investment to date.

The government is trying to attract such facilities in hopes they will help 皇冠体育app evolve from a low-cost manufacturing center into a creator of profitable advanced technologies.

The government hopes the new Intel factory will "bring more value-added research projects" to Dalian, said Zhang Xiaoqiang, vice chairman of 皇冠体育app's top planning agency, the National Development and Reform Commission.

Intel President and CEO Paul Otellini speaks at the signing ceremony in Beijing March 26, 2007. [sina]

The 12-inch (300-millimetre) integrated wafer plant in Dalian city in northeast 皇冠体育app's Liaoning province would have a monthly capacity of 52,000 chips. Intel now operates such factories in the United States, Ireland and Israel.

Intel, which has invested about US$1 billion in 皇冠体育app so far, already has assembly and test operations in the eastern municipality of Shanghai and Chengdu City in the southwest.  

At 90 nanometers, the chips made in Dalian would be some of the most advanced semiconductors manufactured in 皇冠体育app.

Construction of the plant will start before the end of this year, Intel said.

Intel is in the midst of a major overhaul, including price and job cuts and new product roll-outs, as it works to stave off recent advances by rival Advanced Micro Devices Inc., which has gained market share in the last few years.

Intel, which entered the 皇冠体育app market in 1985, has over 6,000 employees working on assembly, testing, research and development and sales and marketing in 16 cities there, according to the company's Web site.

Intel said last month it would make 皇冠体育app an independent sales and marketing region from the beginning of 2007, underlining the country's growing importance as the company's second-largest consumer market after the United States.

Demand for chips in 皇冠体育app has soared as the country has risen to become the world's largest population of mobile phone users and as computer sales grow rapidly.

The government wants Chinese companies to spend more on developing profitable technology and is encouraging foreign companies to move high-tech facilities to 皇冠体育app.