Intel’s strengthens China ties with facility upgrade

Intel will invest $1.6 billion (€1.29bn) to upgrade its factory in the city of Chengdu in western China, the latest sign of how the chipmaker is deepening ties in a market that is proving increasingly troublesome for some US technology peers.

As part of the upgrade, Intel said in a statement yesterday it would bring its most advanced chip-testing technology to China. In exchange it will receive local and regional government support for construction.

“Deploying our newest advanced testing technology in China shows our commitment to innovating jointly with China,” Intel executive vice president William Holt said in the statement. “The fully upgraded Chengdu plant will help the Chinese semiconductor industry and boost regional economic growth.”