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Intel to make Chengdu a global supply center
June 6, 2013, Thursday
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Print Edition
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INTEL Corp celebrates its 10th year in Chengdu this year, proud of its achievements in helping the city gain prominence in the global information technology industry.
At present, more than 20 percent of computers sold worldwide are made in Chengdu, and more than half of global laptop computer chips are assembled and tested there.
Intel, in response to the national government's "Go West" strategy, has invested US$600 million in Chengdu, one of its biggest chip assembly and test centers in the world. Ge Jun, Intel China executive director, said the company is committed to expanding in China and helping development of the entire industry. He discussed his company's strategy.
What are the latest developments in Intel Chengdu?
Intel Chengdu operates one of Intel's largest chip assembly and testing centers and has become a pillar of Intel's China strategy. It is expected to become a major global supply center for assembly and testing.
In March 2012, Intel officially announced that the company's western China distribution center would be located in the Chengdu High-Tech Industrial Development Zone. The aim was to optimize the company's supply chain and improve its response to original equipment manufacturing logistics.
Why did you choose to invest in Chengdu?
Intel was the first multinational company to invest heavily in western areas in response to the Chinese government's inland development initiatives in 1999. As such, we received strong assistance from the Chengdu municipal government in terms of site selection, construction and operations. We had every confidence in the growth of Chengdu and the western region of China, and we were willing to bring our advanced technologies here. We want to help Chengdu municipal officials transform the city into a global base for chip assembly and testing, and technological innovation.
These are the main factors that influenced our decisions:
Policy advantages. China's westerndevelopment initiatives have cast Chengdu as an important regional hub for this strategic growth.
Talent pool. There are many high-quality universities and research institutes in Chengdu that cultivate talented professionals in the IT sector. This quality of talent is crucial for companies who want to locate and expand here.
Market opportunities. Chengdu is an important hub in a wide region with more than 87 million people.
Transport efficiency. Sichuan Province is now accelerating the construction of integrated transport hubs, which will greatly improve transport and logistics services and expand Chengdu's market reach.
What are the highlights of Intel Chengdu's development?
In August 2003, Intel's then CEO Craig Barrett declared that Intel would invest US$375 million to build a chip assembly and testing factory in the Chengdu High-Tech Industrial Development Zone to manufacture processor-related chipsets. This factory was Chengdu's largest foreign investment since China opened its doors to the outside world.
In March 2005, Intel announced that it would increase its investment for Chengdu Phase 2 construction, increasing total investment to US$525 million.
In 2009, Intel invested an additional US$75 million in Chengdu, bringing the total to US$600 million. The company also declared its intention to integrate its assembly and testing in Chengdu.
In January 2012, Intel Chengdu produced its one billionth chip. Meanwhile, Intel announced the establishment of its Western China Distribution Center in the Chengdu High-Tech Zone.
What is Intel's contribution to the Chengdu IT industry?
Intel operations in Chengdu have had a huge knock-on effect. Our expansion has induced a large number of international technology companies to invest here, helped drive the formation of the city's technology industry cluster, stimulated expansion of the Chengdu Bonded Logistics Park and export processing zones, and provided strong support for Sichuan Province and Chengdu to seize the unprecedented opportunities presented by the "Go West" initiatives.
At present, more than 20 percent of computers sold worldwide are made in Chengdu, and more than half of global laptop computer chips are assembled and tested there.
Intel, in response to the national government's "Go West" strategy, has invested US$600 million in Chengdu, one of its biggest chip assembly and test centers in the world. Ge Jun, Intel China executive director, said the company is committed to expanding in China and helping development of the entire industry. He discussed his company's strategy.
What are the latest developments in Intel Chengdu?
Intel Chengdu operates one of Intel's largest chip assembly and testing centers and has become a pillar of Intel's China strategy. It is expected to become a major global supply center for assembly and testing.
In March 2012, Intel officially announced that the company's western China distribution center would be located in the Chengdu High-Tech Industrial Development Zone. The aim was to optimize the company's supply chain and improve its response to original equipment manufacturing logistics.
Why did you choose to invest in Chengdu?
Intel was the first multinational company to invest heavily in western areas in response to the Chinese government's inland development initiatives in 1999. As such, we received strong assistance from the Chengdu municipal government in terms of site selection, construction and operations. We had every confidence in the growth of Chengdu and the western region of China, and we were willing to bring our advanced technologies here. We want to help Chengdu municipal officials transform the city into a global base for chip assembly and testing, and technological innovation.
These are the main factors that influenced our decisions:
Policy advantages. China's westerndevelopment initiatives have cast Chengdu as an important regional hub for this strategic growth.
Talent pool. There are many high-quality universities and research institutes in Chengdu that cultivate talented professionals in the IT sector. This quality of talent is crucial for companies who want to locate and expand here.
Market opportunities. Chengdu is an important hub in a wide region with more than 87 million people.
Transport efficiency. Sichuan Province is now accelerating the construction of integrated transport hubs, which will greatly improve transport and logistics services and expand Chengdu's market reach.
What are the highlights of Intel Chengdu's development?
In August 2003, Intel's then CEO Craig Barrett declared that Intel would invest US$375 million to build a chip assembly and testing factory in the Chengdu High-Tech Industrial Development Zone to manufacture processor-related chipsets. This factory was Chengdu's largest foreign investment since China opened its doors to the outside world.
In March 2005, Intel announced that it would increase its investment for Chengdu Phase 2 construction, increasing total investment to US$525 million.
In 2009, Intel invested an additional US$75 million in Chengdu, bringing the total to US$600 million. The company also declared its intention to integrate its assembly and testing in Chengdu.
In January 2012, Intel Chengdu produced its one billionth chip. Meanwhile, Intel announced the establishment of its Western China Distribution Center in the Chengdu High-Tech Zone.
What is Intel's contribution to the Chengdu IT industry?
Intel operations in Chengdu have had a huge knock-on effect. Our expansion has induced a large number of international technology companies to invest here, helped drive the formation of the city's technology industry cluster, stimulated expansion of the Chengdu Bonded Logistics Park and export processing zones, and provided strong support for Sichuan Province and Chengdu to seize the unprecedented opportunities presented by the "Go West" initiatives.
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