Intel Opens Its First Chip Plant in China. What Would Andy Grove Say?

Intel (INTC) turned on the lights Tuesday at its first chip plant in China, setting the stage for increased business with its customers in Asia. The $2.5 billion factory in Dalian, according to a Reuters report, will also serve as a potential economic boost to China and further its efforts to create a semiconductor industry that goes beyond stamping out chips to one of designing the silicon wafers.

As China builds up its tech base, the government has been seeking to become a developer of cutting-edge technology, rather than merely a center for inexpensive manufacturing.

Ironically, Intel's unveiling of its plant in China comes just a week after the company announced it would invest $6 billion to $8 billion to retool four manufacturing facilities in Arizona to accommodate its next-generation 22-nanometer manufacturing process and also build a new fabrication plant in Oregon.

"The most immediate impact of our multi-billion-dollar investment will be the thousands of jobs associated with building a new fab and upgrading four others, and the high-wage, high-tech manufacturing jobs that follow," Paul Otellini, Intel CEO, said in a statement regarding the State-side projects. Intel expects to create 6,000 to 8,000 construction jobs and 800 to 1,000 high-tech jobs in the U.S.

Intel's announcement last week is more in line with the thought-provoking essay penned by its renowned former CEO Andy Grove earlier this year, which appeared in Bloomberg BusinessWeek, titled "How America Can Create Jobs."

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You are forgetting a detail in your article. The US had limited the fabrication size that could be exported to China. Obama had loosened that restriction somewhat. They are still not allowed to have anything below 65nm I think, unless they develop it domestically. They had developed better a better process than what was allowed under the law so it had to be revised or Intel would have become irrelevant in China.

October 26 2010 at 11:33 AM Report abuse +1 rate up rate down Reply

Oh, how wonderful for us {U.S.}. AND - we can all be sure none of that high technology transferred to COMMUNIST (Still) China will EVER find it's way into their well funded [via our DEBT payments] MILITARY development. For these supposedly 'intel'ligent 'Intel' folks ... this sure is STUPID! Or is it just plain old GREED?

October 26 2010 at 10:55 AM Report abuse +2 rate up rate down Reply