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  • Liaoning News
    Date: 16-Mar-2007 Sources: (People's Daily)

    A plan by the world's largest computer chip manufacturer, Intel, to build a wafer fabrication plant in Dalian, a coastal city in northeast China's Liaoning Province, has been approved by the National Development and Reform Commission (NDRC).

    The production facility, with a designed monthly capacity of 52,000 wafers, semiconductors on which numerous integrated circuits are manufactured, will cost 2.5 billion U.S. dollars, an NDRC source said.

    Intel currently operates wafer packaging and test facilities in Shanghai and Chengdu.

    Industry observers said the Dalian project would help slash Intel's production costs for wafers, as labor and raw materials are much cheaper in China.

    The news has also been welcomed by OEMs (original equipment manufacturers), who will also have their costs cut.

    According to a U.S.-based market research firm, iSuppli, the sales volume of China's wafer market was estimated at 37 billion U.S. dollars in 2006.

    The sales volume is forecast to increase to approximately 45 billion U.S. dollars in 2007.


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