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Intel's $2.5b plant in Dalian starts production

INTEL Corp's new chip plant in Dalian, Liaoning Province -- the most advanced semiconductor facility in the Chinese mainland – went into production yesterday.

The US$2.5-billion wafer fabrication facility, Intel's first in Asia, is the largest single investment in China's high-tech industry, bringing Intel's investment in China to US$4.7 billion.

The plant covers 163,000 square meters of land, equal to 23 football fields, and employs 1,500 engineers. It was designed with the 65-nanometer process technology, more advanced than that in the original plan when construction started in 2007.

"It's a milestone in the high-tech industry of both China and the United States. The plant represents China's strategy to develop key industries and support the development of the northeastern region," said Zhang Xiaoqiang, vice director of the National Development and Reform Commission.

The Intel plant will be a boost to China's semiconductor industry and IT development because integrated circuits are the core of all IT products, said Zhou Zixue, chief economist of the Ministry of Industry and Information Technology.

During its initial run, the plant will turn out chipsets for laptop computers, high-performance desktop PCs and Intel Xeon servers.
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