Intel has won approval to build a $ 2.5 billion, 12-inch wafer plant in northern China for CPU chip sets. The plant would use 90nm technology and produce 52,000 wafers a month at full capacity. The plan calls for the fab to be in the city of Dalian. Intel building a fab in China would signal a loosening of export control policy, and allow US semiconductor gear makers to increase sales to China. China is Intel’s second largest market behind the US, so there is good reason for the company to consider putting a plant here. Chipsets would be a way to experiment with advanced production here. Currently, Intel also farms out some of its chipset production to Asian foundries.

Intel has won approval to build a $ 2.5 billion, 12-inch wafer plant in northern China for CPU chip sets. The plant would use 90nm technology and produce 52,000 wafers a month at full capacity. The plan calls for the fab to be in the city of Dalian. Intel building a fab in China would signal a loosening of export control policy, and allow US semiconductor gear makers to increase sales to China. China is Intel’s second largest market behind the US, so there is good reason for the company to consider putting a plant here. Chipsets would be a way to experiment with advanced production here. Currently, Intel also farms out some of its chipset production to Asian foundries.