Intel setting up 300mm chip facility in China

Mumbai: Intel, the world leader in computer chip technology, is setting up a 300mm wafer fabrication facility in Dalian, China, its first such facility in Asia. Construction will start immediately and the plant will be operational by 2010. The new factory, named Fab 68, will cover 163,000 square metres of factory space and host a 15,000 square meter clean room.

Fab 68 will extend Intel''s manufacturing leadership, while helping cultivate engineering talent and accelerate the growth of China''s information technology (IT) ecosystem, Intel said.

"The scope and scale of our global manufacturing network gives Intel the ability to provide customers with leading-edge, energy-efficient products in high volume," said Craig Barrett, chairman, Intel Corporation. "Fab 68 will have world-infrastructure and be an integral part of our global manufacturing network while bringing us closer to our customers and partners in China," he added.

"Intel''s investment in Fab 68 comes at a time when Dalian''s information technology industry is aiming to compete globally and become one of the top three IT clusters in China," said Dalian mayor Xia Deren, adding, "Fab 68 is not just bringing advanced chipset manufacturing to Dalian, Intel''s presence will attract investment from virtually every segment of the IC industry, which in turn will have tremendous effect on the region''s economy and industries. It is estimated that many suppliers are planning to follow Intel''s lead and establish operations in Dalian. The cluster will help revitalising the industries in China''s Northeast region, and make Dalian rise to be one of the IT hubs in China."

Fab 68 will be designed and built to minimise impact on the environment. "The design standards for Fab 68 meet Intel''s high standards for environmental performance in all areas including water, energy and chemical waste management, said Kirby Jefferson, General Manager of Fab 68.

Intel said it aimed at developing the local talent pool. "Local talent development is a key component to our fab network strategy," said Wee Theng Tan, vice president of corporate affairs group and president of Intel China. "We''re partnering with the Dalian University of Technology and the Dalian Municipal Government to establish a Semiconductor Technology Institute and donating a 200 mm wafer process line for training purposes. In the future, this Semiconductor Technology Institute will foster world- talent for the IT industry in China and around the globe," he said.

The Fab 68 facility takes Intel''s total investment in China close to $ 4 billion. Intel has established two assembly and test plants in Shanghai and Chengdu, along with R&D centers and labs in Beijing, Shanghai and elsewhere in China.