Intel set to spend €345m for second China plant

INTEL CORP, the world's biggest computer-chip maker, plans to invest $375 million (€345m) to build a second factory in China, expanding to take advantage of lower-cost manufacturing in the company's second-largest market.

Intel will invest an initial $200m and hire 675 people for a plant to assemble and test semiconductors in the southwestern city of Chengdu, the company said. The company, which already has a plant in Shanghai, plans to spend as much as $175m more and add workers later. The venture is a boost for China's efforts to develop its chipmaking industry and for the government's campaign to attract investment to the country's underdeveloped western hinterlands.

Asia-Pacific, where Intel is building more factories to take advantage of lower labour costs and rising demand, was the only region where the US company increased sales last year.