[photopress:craig_barett.jpg,full,alignright]Intel may well build its first semiconductor factory in Asia in the northeastern Chinese city of Dalian. If it happens it may be a sort of three way investment. Intel, Taiwan Semiconductor Manufacturing and Hynix Semiconductor joining together to build chip factories in China. Donald Lu, a Beijing-based analyst at Goldman Gaohua Securities, said, ‘It’s good for China as it will have a cluster effect. It will help attract equipment vendors to set up facilities in China, which would in turn help Chinese companies.’
The plant, if it happens, could make computer processor chips and would cost over $3 billion to build. Intel also need U.S. government approval to export its manufacturing technology to China.
Craig Barrett, who is chairman of Intel (he is in the picture above and is the one with the short hair) said last year the company is awaiting a government report from India on semiconductor-manufacturing before investing in the South Asian nation. The decision would depend on the incentives that the federal government chooses to offer. Craig Barrett, said, ‘India will be in competition with countries like China on manufacturing.’
Intel may formally announce its plans next month according to the Financial Times. The company, whose processor chips power more than 70 percent of all personal computers, employs 6,800 people in China. The company has invested more than US$1.3 billion in China since 1985, when it began operating in the country.
Sources: Bloomberg wire service and Xinhua