Intel to invest $1.6 billion in its Chinese chip factories

Intel announced it's going to invest $1.6 billion in China over the next 15 years to expand its chipmaking plants in Chengdu. A decade ago the chip giant invested $600 million to set up the facility and the extra investments will be used to upgrade the current factories as well as to introduce an advanced-testing technology to China. Among other things, Intel is expected to use the upgraded Chinese factories to improve the attractiveness of its mobile chip offerings.

This information comes hot on the heels of the news that Intel will be making new partnerships with chipmakers in China and expecting those companies, including the likes of Rockchip and Tsinghua Unigroup, to distance themselves from ARM. Also just a couple of weeks ago we heard that Intel was merging its mobile chip unit into its PC chip business.

China is keen on investment into the country with semiconductors strategically targeted by US$5 billion of extra government funding to "increase chip production, enhance facilities for chip design and testing, and support mergers to create bigger players". This looks like it might have paid off with Intel's action.

Source: Hexus