Intel announced plans to build a 12-inch wafer fabrication plant in China in the northeast coastal city of Dalian. The US$2.5 billion investment for Fab 68 will become Intel's first wafer fab in Asia and adds significant investment to Intel's existing operations in China.

Construction on Fab 68 is scheduled to begin later in 2007 with production projected to begin in the first half of 2010. Initial production will be dedicated to chipsets to support Intel’s core microprocessor business. When completed, Fab 68 will become part of Intel's manufacturing network that includes eight 12-inch factories in 2010 with other fabs located in the United States, Ireland and Israel.

Manufacturing with 12-inch wafers is expected to increase the ability to produce semiconductors at a lower cost compared with more commonly used 8-inch wafers. Using 12-inch manufacturing technology consumes 40% less energy and water per chip than an 8-inch wafer factory, Intel highlighted.

Intel president and chief executive officer (CEO) Paul Otellini indicated that China is the fastest-growing major market for Intel and Intel believes the investment in China will provide for future growth.

"Fab 68 will be our first new wafer fab at a new site in 15 years. Intel has been involved in China for more than 22 years and over that time we've invested in excess of US$1.3 billion in assembly test facilities and research and development.

By: DocMemory
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