Intel Corporation President and CEO Paul Otellini today announced the opening of Intel’s first wafer fabrication facility in Asia, marking a major new milestone in the company’s 25-year history of investing and partnering in China.
Intel’s new world-class manufacturing facility, called Intel Semiconductor (Dalian) Ltd. (also referred to as Fab 68), has begun producing 300mm silicon wafers. Initial production is dedicated to chipsets destined for laptop computers, high-performance desktop PCs and powerful Intel® Xeon® processor-based servers. Located in Dalian in Northeast China’s Liaoning Province, Fab 68 represents an investment of US$2.5 billion and opens up extensive new opportunities for economic development in China.
“For 25 years now, Intel has been investing and innovating in China with China and for China,” said Otellini, who spoke at today’s official opening ceremony in Dalian. “We’re excited to extend that commitment by bringing Fab 68 online as a new engine for innovation — not only in Dalian, but also to benefit China as a whole. This manufacturing facility helps deliver on our vision to contribute to sustainable growth in China while giving us better proximity to serve our customers in Asia.”
The state-of-the-art plant is a core piece of Intel’s commitment to support China’s government in its efforts to revitalize the Northeast China region. The Chinese government’s stimulus measures include upgrading the area’s economic structure and supporting innovation in emerging industries such as next-generation information technology (IT).
“Dalian is deploying the strategy to build the city into a modern international metropolis by further opening up to the outside world, and Intel’s latest investment has already had a strong positive influence on Dalian’s economic landscape," said Xia Deren, party secretary of Dalian. "The opening of Fab 68 will help drive the restructuring and upgrading of the industry in Dalian and will establish the city as an IT hub, while attracting more investments from other technology companies."
Already fully operational, Fab 68 is staffed with employees hired from within the region trained to fill skilled, well-paid positions in high-tech manufacturing. Intel’s focus on cultivating local talent aligns closely with Chinese government initiatives that aim to fuel social innovation and workforce development in what China calls “strategic emerging industries.”
Furthering the economic impact of Fab 68, an estimated two dozen companies have already directly invested in Dalian so they are better poised to do business with Intel. In addition, Intel has started doing business with more than 80 existing suppliers based in Dalian.
Fab 68 is Intel’s first manufacturing plant at a new site since 1992 and the eighth in the company’s global network of 300mm wafer fabrication facilities. Under construction since 2007, Fab 68 includes 163,000 square meters of factory space — roughly the size of 23 football fields — and is rated as a “Class 10” clean room. The new facility has started up on Intel’s advanced 65-nanometer (65nm) process technology. A 65nm, 300mm wafer contains hundreds of die with transistor line widths 1,400 times thinner than a human hair.
“Fab 68 puts Dalian on the map as an example of Intel’s leading-edge technology and manufacturing capability,” said Kirby Jefferson, general manager of Fab 68. “We’re proud to have built the most advanced semiconductor manufacturing facility in China today. In addition, Fab 68 models the exacting design and construction standards that Intel applies globally for environmental performance, including water, energy and chemical waste management.”
In his remarks at today’s opening event, Otellini said Intel plans to continue investing in and collaborating in support of China’s innovation agenda. He noted that the “smart” revolution taking place in the computing industry today creates exciting opportunities that Intel can pursue in cooperation with China’s government, industry, local communities and educational system.
The completion of Fab 68 fulfills Intel’s total investment commitment in China to US$4.7 billion. Besides the new manufacturing facility in Dalian, Intel has established a large assembly and test site in Chengdu as well as R&D centers and labs in Beijing, Shanghai and elsewhere in China.
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