China now accounts for more than half of Intel's regional consumption outside of Japan and is expected to surpass the US as the company's largest market by 2010.
China overtook Japan last year to become the second-largest market for the microprocessor giant and sales have continued to climb steadily.
China accounted for more than half of the 20 to 23% of Intel's fourth-quarter worldwide sales consumed in Asia excluding Japan while the US accounts for more than 20% of worldwide computer sales.
Last August, Intel said it would build a US$375 million chip test and assembly plant in Chengdu, complementing a similar US$500 million plant in Shanghai.
In mid-January Intel said it had signed memorandums of understanding to supply chips to China's top two computer makers, Legend Group and Shanghai Founder Yanzhong Science and Technology.