Intel Corp will invest $1.6 billion to upgrade its factory in the city of Chengdu in western China, the latest sign of how the chipmaker is deepening ties in a market that is proving increasingly troublesome for some U.S. technology peers.
As part of the upgrade, Intel said in a statement on Thursday it would bring its most advanced chip-testing technology to China. In exchange it will receive local and regional government support for construction.
“Deploying our newest advanced testing technology in China shows our commitment to innovating jointly with China,” Intel executive vice president William Holt said in the statement. “The fully upgraded Chengdu plant will help the Chinese semiconductor industry and boost regional economic growth.”
The announcement comes three months after Intel purchased a minority stake in a government-controlled semiconductor company to jointly design and distribute mobile chips, an industry that China considers to be of strategic importance. (Read More)