Intel Commits $375 Million To New Packaging Plant In China

Construction on the plant will start next year as CEO Craig Barrett continues leaving a trail of tech investments behind during his trip to Asia.



Intel said Wednesday it will spend $375 million to build a test and assembly plant in Chengdu, a city in China's western Sichuan Province. Construction will start in the second half of 2004 and the facility should open in 2005. It will employ about 675 people.

The investment highlights the importance of China, as well as the Asia-Pacific region, which account for roughly 40% of Intel's global sales. CEO Craig Barrett is in Asia this week, touring Taiwan, Malaysia, China, and Korea, and has left a trail of investment in each country.

On Monday, Intel said it would open a high-level system design center in Taiwan, which will focus on communications products, an area where Intel is trying to establish dominance. On Tuesday, in Malaysia, Barrett said Intel would invest $40 million in a design center in Penang that will employ 1,000 people. The chipmaker also will invest another $100 million in other Malaysia-based R&D.

Barrett is also expected to make an official announcement regarding the Chengdu, China, facility, which would be Intel's second packaging facility in China; its first is a $500 million facility in Shanghai.

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