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Intel considering building factory in northeastern China

Intel Corp, the world's largest chipmaker, is considering building its first semiconductor factory in Asia in the northeastern Chinese city of Dalian.

China's central government has approved the project, Gao Fujun, assistant counsel at the Dalian Foreign Trade and Economic Cooperation Bureau, said by telephone yesterday.

The company won approval to build a factory in the Dalian Economic & Technological Development Zone, Gao said. Intel has assembly and testing plants in Shanghai and Chengdu.

Intel spokesman Mark Miller said the Santa Clara, California-based company is in talks with "several" governments about its next chipmaking factory.

"We look at sites all over the world and have several discussions going on with several governments about where to put our next facility," said Miller, who's based in Hong Kong.

"Intel is not making a statement at this time about our next facility," he added.

Intel may formally announce its plans next month, the Financial Times reported earlier yesterday, citing industry officials it didn't identify.

Intel may join Taiwan Semiconductor Manufacturing Co (台積電) and Hynix Semiconductor Inc in building factories in China. The move may be a victory for China, which is competing with India in attracting investments from overseas technology companies.

Earlier this month, Intel made China a separate sales region from the rest of the Asia-Pacific region because the nation is the company's second-largest consumer market after the US.

The company currently has manufacturing facilities in the US, Ireland and Israel.
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