Intel breaks ground on 300mm fab in China

Intel Corp. on Sept. 8 broke ground on its first 300mm wafer fabrication facility in Asia, Fab 68, which is located in the northern China city of Dalian, in the Liaoning Province, China.

"Fab 68 will have world-class infrastructure and will be an integral part of our global manufacturing network while bringing us closer to our customers and partners in China," said Craig Barrett, Chairman, Intel.

The $2.5 billion project announced on Marchis set to be operational in 2010. Fab 68 will cover 163,000m² of factory space and host a 15,000 m² clean room.

An earlier reportsaid that on March Intel won approval to build the 12-inch wafer plant in northern China for CPU chipsets, based on a statement issued by China's National Development and Reform Commission (NDRC). According to the NDRC, the plant will use 90nm technology to produce wafers.

With its presence in Dalian, Intel plans initiatives aimed at developing the local talent pool. "Local talent development is a key component to our fab network strategy," said Wee Theng Tan, VP of corporate affairs group and president of Intel China. "We're partnering with the Dalian University of Technology and the Dalian Municipal Government to establish the Semiconductor Technology Institute and donating a 200mm wafer process line for training purposes. In the future, this Semiconductor Technology Institute will foster world-class talent for the IT industry in China and around the globe."

Intel added that Fab 68 will be designed and built to minimize impact on the environment. "The design standards for Fab 68 meet Intel's high standards for environmental performance in all areas including water, energy and chemical waste management," said Kirby Jefferson, general manager of Fab 68.

"Intel's investment in Fab 68 comes at a time when Dalian's IT industry is aiming to compete globally and become one of the top three IT clusters in China," said Dalian Mayor Xia Deren. "Fab 68 is not just bringing advanced chipset manufacturing to Dalian, Intel's presence will attract investment from virtually every segment of the IC industry, which in turn will have tremendous effect on the region's economy and industries."

This recent project brings Intel's total investment in China close to $ 4 billion. Intel has established two assembly and test plants in Shanghai and Chengdu, along with R&D centers and labs in Beijing, Shanghai and elsewhere in China.