Two major chip makers, Advanced Micro Devices (AMD) and Texas Instruments, have announced closer physical ties to China. TI has bought a factory in Chengdu capable of making US$1 billion worth of chips annually with an option to expand. AMD has signed a business agreement with the local authorities in Beijing to make "significant investments" within the city.
Captive manufacturing capacity is a major business rule for TI, and the ability to manufacture semiconductors next to the massive Foxconn and Nam Tai Electronics factories makes sense.
For AMD, a second research hub in China focusing on advanced areas like triple-network convergence and supercomputing provides tax-efficient access to a massive workforce pool of top-notch engineers.
The Money Times notes that Intel is currently recruiting hardware and process engineers in the northeastern city of Dalian, which probably means it will soon be announcing a new manufacturing facility in that area.