Monday, September 10, 2007

Intel in China

It's not clear from the article whether the $2.5bln is in addition to the $4 bln mentioned later in the article .... $2.5bln is a VERY large investment for a single plant, considering the currency exchange, dollars-to-yuan ....

Interesting comment from Intel CEO (Barrett) about India's losing out on this semiconductor investment ... sounds like the standard game of playing off one country against the other for a better deal for investing there ... similar to what non-US companies do when setting up plants here, playing one state off another to locate their new plant (e.g. BMW in Alabama), getting tremendous tax breaks, sometimes actually getting paid to relocate, i.e. the state pays for the plant, infrastructure (add'l roads, schools, etc.) and also 'forgives' all taxes for many years ...

Developing local talent ... and already having more than 2 'research and development' sites there ... not low-level work but research ...

I wonder how much investment Intel is making in the US, colleges, or plants ... meanwhile it is one of the loudest voices for opening up H-1B visa programs to bring global 'talent' here (for training and then sending back to run shops overseas? ) ...

UPDATE: Intel Breaks Ground On $2.5 Bln Chip Plant In China

September 09, 2007: 08:46 PM EST

SAN FRANCISCO (Dow Jones) - Intel Corp., the world's largest chipmaker, said Saturday that construction work is underway at its $2.5 billion chip manufacturing plant in China.
The Dalian, China facility will be Intel's first manufacturing plant in Asia, and is expected to be in operation in 2010.
Intel, which has been in a heated battle for market share against rival Advanced Micro Devices Inc. (AMD) , has invested roughly $4 billion in China.
The Santa Clara, Calif.-based company already has two assembly and test plants in Shanghai and Chengdu. It also has research and development centers in Beijing, Shanghai and other areas in China.
Named Fab 68, the plant will "be an integral part of our global manufacturing network while bringing us closer to our customers and partners in China," said Intel Chairman Craig Barrett in a statement.
Barrett this past week said that the company is still interested in building a chip-manufacturing plant in India, though the government "has been a bit slow in coming out with a semiconductor policy and missed the window" on its manufacturing facility "for now."
Intel also said it's working to develop local talent through partnerships with Dalian University of Technology and its establishment of the Semiconductor Technology Institute with the municipal government.

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