Intel Corp. to build a new chip factory in China

Microprocessor industry giant Intel has said that they are going to invest $2.5 billion in a new chip factory in China. With this Intel would have a broader presence in the Chinese market which has increasingly becoming an important destination for the US based companies.

China also happens to be the second largest internet market and Intel’s new factory will supply chipsets to customers in China. Intel believes that the country would become the largest information technology market by the time the facility opens in 2010.

Intel is going to setup this new factory in the northeastern city of Dalian and it would be their first factory in Asia to fabricate wafers. Intel CEO Paul Otellini added: “This project confirms and further enhances the strategic importance of China in our global strategy and in the IT industry around the world.”

Otellini added: “Depending on how things go in Washington over the next few years, Intel will be able to respond and put in place the technology inside that 300-millimeter factory that is capable of meeting the needs for the product that we intend to build there.”