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Intel to build IC-assembly plant in Shanghai to produce Pentium 4 processors








Silicon Strategies


SHANGHAI -- In a move to expand its efforts in China, Intel Corp. here set plans to build a new chip-assembly plant in Shanghai geared for its Pentium 4 microprocessor lines, according to a report from the Reuters news service.

Intel's new IC-assembly facility in Shanghai would be completed by the end of this year, with production slated for the first half of 2003, according to the report.

The plant is part of a $302 million investment announced by Intel last September. At the time, the microprocessor giant also announced plans to assemble its i845 chip set in Shanghai (see Sept. 21 story ).

For years, Intel has assembled and tested its flash memory chips in Shanghai. Its current IC-assembly plant is located in Shanghai's free-trade Waigaoqiao zone.

With the announcement, Intel has expanded its chip-assembly efforts for the Pentium 4 processor. The Santa Clara, Calif.-based company also assembles Pentium 4 processors in plants located in Malaysia and the Philippines.

At the same time, the company also hopes to maintain its momentum in the China market. Intel, which has been selling processors in China for years, dominates the segment in that nation, according to analysts.

Meanwhile, the company still has no plans to build a fab in China, said Craig Barrett, Intel's CEO, in the report.











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