Intel invests US$300 million in China chip packaging and testing plant
The US chip giant aims to expand an existing chip packaging and testing facility in China, its largest market
In addition to enlarging packaging and testing capacity for server chips, the facility will also establish a “customer solutions centre to improve the efficiency of the local supply chain, increase support for Chinese customers and improve response time”, Intel China said on Monday on its WeChat account.
The Santa Clara, California-based company will inject US$300 million into its local entity, Intel Products (Chengdu), to support the expansion, according to a WeChat post published by the city’s Reform and Development Commission.
Launched in 2003, Intel’s Chengdu plant is responsible for the packaging and testing of more than half of the company’s laptop processors shipped worldwide. Packaging and testing is the final step in semiconductor manufacturing, ensuring the quality and reliability of a product.
The facility plays a critical role in Intel’s global supply chain, while Chengdu provides a “favourable” business environment that paves the way for the company’s “stable growth”, Intel CEO Patrick Gelsinger said during a visit there last year. Chengdu is the capital of China’s southwestern Sichuan province.
