Intel today broke ground on its first 300mm wafer fabrication facility in Asia. The new factory, named Fab 68, will extend Intel’s manufacturing leadership, while helping cultivate engineering talent, accelerate the growth of China’s information technology (IT) ecosystem, and bring Intel’s culture of environmental leadership to China. The $ 2.5 billion project is set to begin construction immediately and be operational in 2010. Fab 68 will cover 163,000 square meters of factory space and host a 15,000 square meter clean room.

Intel today broke ground on its first 300mm wafer fabrication facility in
Asia. The new factory, named Fab 68, will extend Intel’s manufacturing
leadership, while helping cultivate engineering talent, accelerate the growth of
China’s information technology (IT) ecosystem, and bring Intel’s culture of
environmental leadership to China. The $ 2.5 billion project is set to begin
construction immediately and be operational in 2010. Fab 68 will cover 163,000
square meters of factory space and host a 15,000 square meter clean room.

“The scope and scale of our global manufacturing network gives Intel the ability
to provide customers with leading-edge, energy-efficient products in high
volume,” said Craig Barrett, Chairman, Intel Corporation. “Fab 68 will have
world-class infrastructure and be an integral part of our global manufacturing
network while bringing us closer to our customers and partners in China.”

“Intel’s investment in Fab 68 comes at a time when Dalian’s information
technology industry is aiming to compete globally and become one of the top
three IT clusters in China,” said Dalian Mayor Xia Deren. “Fab 68 is not just
bringing advanced chipset manufacturing to Dalian, Intel’s presence will attract
investment from virtually every segment of the IC industry, which in turn will
have tremendous effect on the region’s economy and industries. It is estimated
that many suppliers are planning to follow Intel’s lead and establish operations
in Dalian. The cluster will help revitalizing the industries in China’s
Northeast region, and make Dalian rise to be one of the IT hubs in China.”

Demonstrating its dedication to sustainable growth in Dalian, Fab 68 will be
designed and built to minimize impact on the environment. “Intel has a long
history of environmental leadership in our products and operations and we are
applying the same world-class design and construction standards in Fab 68 that
we apply everywhere in the world,” said Kirby Jefferson, General Manager of Fab
68. “The design standards for Fab 68 meet Intel’s high standards for
environmental performance in all areas including water, energy and chemical
waste management.”

With its presence in Dalian, Intel plans initiatives aimed at developing the
local talent pool. “Local talent development is a key component to our fab
network strategy,” said Wee Theng Tan, Vice President of Corporate Affairs Group
and President of Intel China. “We’re partnering with the Dalian University of
Technology and the Dalian Municipal Government to establish the Semiconductor
Technology Institute and donating a 200 mm wafer process line for training
purposes. In the future, this Semiconductor Technology Institute will foster
world-class talent for the IT industry in China and around the globe.”

Intel investment in Fab 68 sets its total investment in China to close to US$ 4
billion. Intel has established two assembly and test plants in Shanghai and
Chengdu, along with R&D centers and labs in Beijing, Shanghai and elsewhere in
China.