Intel confirms $2.5 billion plant in China

The rumors have finally been confirmed by the source itself. Intel announced this week they will be investing $2.5 billion in a 300-millimeter wafer fabrication facility, which will be built in the Chinese city of Dalian.

"China is our fastest-growing major market and we believe it's critical that we invest in markets that will provide for future growth to better serve our customers," said Intel President and CEO Paul Otellini. "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 $1.3 billion in assembly test facilities and research and development. This new investment will bring our total to just under $4 billion, making Intel one of the largest foreign investors in China."

Construction is setup to begin later this year and should be up and running by mid 2010. This is the first facility Intel will construct from the ground up at a new site since 1992, and it is expected that once operational will dramatically increase the ability to produce semiconductors at a lower cost compared to the more commonly used 200mm wafers.