AMD will expand chip plant in Suzhou
By Zhu Shenshen |
November 9, 2010, Tuesday
|
Print Edition
Print Edition
ADVANCED Micro Devices Inc announced yesterday it will expand a chip assembly plant in Suzhou to double its production capacity, becoming the latest chip manufacturer to increase investment in China.
Chip makers are penetrating the domestic market, which is fueled by popularity of handsets, computers and laptops, industry insiders said.
AMD China declined to reveal how much it will invest in the expansion plan, but a source told Shanghai Daily it will be US$300 million. AMD invested US$100 million in the Suzhou, Jiangsu Province, plant, which opened in 2005.
AMD, the world's second biggest computer chip maker, is scheduled to complete the first phase of the expansion plan by December next year. Once the expansion is complete, the plant, in Suzhou Industrial Park, will be capable of assembling, testing and packaging chips for CPU (central processing units), GPU (graphic processing units) and APU (accelerated processing units).
"It marks a key milestone in AMD's commitment to supporting the growth of the IT industry in China," said Robert Rivet, AMD's executive vice president and chief operations and administrative officer. "The growth of the Chinese marketplace and its impact on the global economy is truly impressive."
China is AMD's second biggest market.
AMD has two other chip and assembly plants ¨? one in Malaysia and another in Singapore ¨? aside from the one in Suzhou. The expansion in Suzhou means AMD is shifting production capacity to China. After the expansion, the Suzhou plant will account for about 70 percent of AMD's global chip testing and assembling capacity, according to the industrial park's Website.
The booming integrated circuit market in China provides chip giants huge market potential as the country is the world's No. 1 mobile phone market and the world's No. 2 personal computer market.
In October, Intel started production of a US$2.5 billion chip plant in Dalian, Liaoning Province.
In the first half of the year, revenue in China's integrated circuit industry was 66.60 billion yuan (US$9.79 billion), up 45.1 percent year on year, the China Semiconductor Industry Association said.
Chip makers are penetrating the domestic market, which is fueled by popularity of handsets, computers and laptops, industry insiders said.
AMD China declined to reveal how much it will invest in the expansion plan, but a source told Shanghai Daily it will be US$300 million. AMD invested US$100 million in the Suzhou, Jiangsu Province, plant, which opened in 2005.
AMD, the world's second biggest computer chip maker, is scheduled to complete the first phase of the expansion plan by December next year. Once the expansion is complete, the plant, in Suzhou Industrial Park, will be capable of assembling, testing and packaging chips for CPU (central processing units), GPU (graphic processing units) and APU (accelerated processing units).
"It marks a key milestone in AMD's commitment to supporting the growth of the IT industry in China," said Robert Rivet, AMD's executive vice president and chief operations and administrative officer. "The growth of the Chinese marketplace and its impact on the global economy is truly impressive."
China is AMD's second biggest market.
AMD has two other chip and assembly plants ¨? one in Malaysia and another in Singapore ¨? aside from the one in Suzhou. The expansion in Suzhou means AMD is shifting production capacity to China. After the expansion, the Suzhou plant will account for about 70 percent of AMD's global chip testing and assembling capacity, according to the industrial park's Website.
The booming integrated circuit market in China provides chip giants huge market potential as the country is the world's No. 1 mobile phone market and the world's No. 2 personal computer market.
In October, Intel started production of a US$2.5 billion chip plant in Dalian, Liaoning Province.
In the first half of the year, revenue in China's integrated circuit industry was 66.60 billion yuan (US$9.79 billion), up 45.1 percent year on year, the China Semiconductor Industry Association said.
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