Intel plans second assembly plant for China

Intel has signed a memorandum of understanding to construct a test and assembly facility in the southwestern Chinese city of...

Intel has signed a memorandum of understanding to construct a test and assembly facility in the southwestern Chinese city of Chengdu. The facility will be the second plant that Intel operates in China.

Construction of the Chengdu plant is sheduled to begin sometime during the first half of 2004, with production to begin in late 2005. Initial investment will cost $200m, and Intel will invest an additional $175m to expand the plant in the future.

"Initially, it is likely the facility will produce chipsets. However, we're not absolutely committed to that," said John McKean, an Intel spokesman.

Intel operates a similar facility in Shanghai which was built for the test and assembly of flash memory. In 2001, Intel announced plans for a $300m expansion of its Shanghai plant, due to be completed next year, for the test and assembly of chipsets.

Intel will also invest $40m to construct a design and development centre in Penang, Malaysia, whichwill focus on the development of manufacturing processes and packaging technology for various Intel products.

Sumner Lemon writes for IDG News Service

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