Intel to invest $300 million in semiconductor manufacturing in China

Văn Thắng (Theo SCMP) |

The US semiconductor giant Intel said it will expand its chip packaging and testing facilities in China - its largest market.

Intel said that in addition to expanding its existing manufacturing facilities, it will also establish a customer solution center to improve local supply chain efficiency, enhance support for Chinese customers and shorten response times.

Accordingly, the Santa Santa Santa Santa, California-based company will invest $300 million in its Intel Products branch (in Chengdu, China) to implement the expansion plan.

Intels Chengdu branch, established in 2003, is responsible for packaging and testing more than half of the chips used in laptops it sells globally. Packaging and testing are the final steps in semiconductor manufacturing, ensuring the quality and reliability of a product.

Last year, during a visit to Chengdu, Intel CEO Patrick Gelsinger said that the city's incentives have created a favorable business environment, paving the way for the company's stable growth.

Intel's move comes amid the ongoing technology war between the world's two largest economies. Previously, on October 16 this year, the China Cyber Security Association called for a comprehensive review of Intel's products to protect national security and consumer rights.

The association said Intel was irresponsible to customers, accusing the US company of using remote management features to monitor users and secretly installing backsides, which led to the risk of information and network insecurity.

To date, nearly a quarter of Intels global revenue comes from the Chinese market. Intel's CPU is available in consumer electronics products such as laptops and data center servers.

According to the Institute of Information and Communications Technology, servers using Intel's x86 architecture will account for about 90% of the domestic CPU server market in 2023 and ARM will account for the remaining 10%.

Văn Thắng (Theo SCMP)
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