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Intel Confirms Chinese Fab Plans

Intel confirmed that it is going to build a $2.5 billion politically sensitive plant in China

Intel confirmed Monday that it is going to build a $2.5 billion politically sensitive plant in China. Plans have been in the works for over 18 months. The only way Intel was able to get the US government to countenance the deal was to ensure it wasn't a joint venture. It's 100% Intel owned,

It's going to produce 300mm wafers, making it Intel's first Asia wafer fab.

It will be know as Fab 68. Production won't start until the first half of 2010. Intel says initial production will be chipsets for its core microprocessors for export as well as local use.

As the Wall Street Journal remarks, Intel probably couldn't get permission from the US government to put a chip factory in China. Fab 68 won't be state-of-the-art and will probably be fitted with some recycled equipment but still raises the issue of how safe Intel's IP will be.

Intel hasn't had a new wafer site in 15 years and is expected to practice the n -2 rule. Currently the project is approved by the US government for a 90nm process, but by 2010 Intel will be at 32nm so if Washington allows it, Fab 68 could start with 65nm.

Hynix and SMIC already have 90nm plants in China.

Intel says the deal will make it - at a total of $4 billion - one of the largest foreign investors in China, which also happens to be Intel's fastest-growing major market.

Intel CEO Paul Otellini made the announcement from Great Hall of the People in Beijing, underscoring the fact that the move is political down to the plant location in Dalian, which is on the Chinese government's wish list for revitalization.

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Virtualization News 04/04/07 05:34:16 PM EDT

Intel confirmed that it is going to build a $2.5 billion politically sensitive plant in China. Plans have been in the works for over 18 months. The only way Intel was able to get the US government to countenance the deal was to ensure it wasn't a joint venture. It's 100% Intel owned, It's going to produce 300mm wafers, making it Intel's first Asia wafer fab. It will be know as Fab 68. Production won't start until the first half of 2010. Intel says initial production will be chipsets for its core microprocessors for export as well as local use.

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