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China Approves $2.5B Intel Plant

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March 13, 2007 5:43:28 PM

Very interesting...



Quote:
China Approves $2.5B Intel Corp. Plant
Tuesday March 13, 1:33 pm ET
China Approves $2.5 Billion Intel Corp. Chip Plant Amid Booming Demand in Country


BEIJING (AP) -- Intel Corp. has received approval to build a $2.5 billion chip plant in China amid booming Chinese demand for chips used in personal computers and mobile phones, the government said Tuesday.

The factory is planned for the northeastern city of Dalian, the cabinet's National Development and Reform Commission, the country's top economic planning agency, said on its Web site.

Intel, the world's largest semiconductor maker, has not revealed plans to build a chip plant in Dalian. Intel officials in Beijing and the chipmaker's headquarters in Santa Clara, Calif., declined to comment, saying the company has not made a formal announcement.

Demand for chips in China has soared as the country has risen to become the world's largest population of mobile phone users and as computer sales grow rapidly.

The communist government wants Chinese companies to spend more on developing profitable technology and is encouraging foreign companies to move high-tech facilities to China.

The Intel factory approved for Dalian would use 90-nanometer technology, the NDRC announcement said.

One key way the chip industry measures manufacturing sophistication is the size of the circuitry, and the process Intel plans to use in the China facility means the chip parts will be shrunken down to 90 nanometers, or 90 billionths of a meter.

That suggests that Intel plans to use the facility to manufacture flash memory chips and chipsets, which act as a PC's central nervous system by sending data from the microprocessor to other parts of the computer.

Intel currently uses the 90-nanometer process at factories in California, New Mexico, Ireland and Israel to make chipsets and flash memory chips based on the NOR architecture. It also makes flash chips based on the NAND architecture on the 90-nanometer process through a joint venture with memory chip maker Micron Technology Inc. NAND flash is a type of memory used in digital music players and digital cameras.

Intel and Advanced Micro Devices Inc. are spending heavily to upgrade their factories in other parts of the world to handle microprocessors that need more advanced technology than factories producing chipsets and flash memory. The smaller circuitry allows companies to drive down production costs and boost performance by squeezing more transistors onto the same slice of silicon.

Intel currently makes most of its advanced microprocessors on 65-nanometer technology and said production is slated to begin in the second half of this year on the next-generation 45-nanometer technology. The transistors on chips built on the 45-nanometer process are so small that 30 million of them could fit onto the head of a single pin.

Intel has 6,000 employees in China and factories in Shanghai and the western city of Chengdu making memory chips, microprocessors and other products, according to the company's Web site.

The Intel facility in Dalian would be one of China's biggest single foreign-financed projects if the company invested the full $2.5 billion cited in the government announcement.

The biggest foreign investment in China to date is a $4.3 billion petrochemical plant being built by Royal Dutch/Shell Group and two Chinese partners on the country's southeastern coast.

link
March 13, 2007 6:40:52 PM

Because there goes American jobs to a 3rd world country, instead of building the lives of American citizens it's doing just the opposite and strengthing China while American consumers pay for it. And when Wold War 3 breaks out China has our largest technology powerhouse company in its hands to do as it pleases.

Conspiracy? The US should not allow out companies to outsource outside the borders... we should not bring workers in either. Doesn't the American dream only belong to Americans? Not that other countries can't have a China dream of course, but why we would take away from our own country?

I like Intel less because of this. And don't bother bashing my opinion, I won't be back to read it ;) 
March 13, 2007 6:50:54 PM

That's a really good question. Maybe they're trying to figure out how to tell their employees that their jobs will be outsourced.

I'm j/k, I know Intel does a lot of manufacturing in cheap labor Asian countries. However, the most important part (i.e., die production and R&D, not assembly) has typically been done in non-third world countries (Ireland, Israel, US). Is this Chinese fab more assembly, or are they starting to break the highly paid country model for chip production? If the market is really starting to turn into a commodity market, any US Intel fab based employee better be very scared for their job as I'm sure we'll start to see their jobs exported.

Maybe this is the true focus of the Chinese fab and Intel doesn't want to answer these hard questions yet. If this is really their intention, then I definitely would have less respect for Intel. But shareholders would love it. :roll:

Or they're just a little late. Isn't speculation fun?
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March 13, 2007 7:33:49 PM

Call me xenophobic, but give me a good reason why North America should be funding the next World War? Do you really think that China is just going to sit there with it's overcrowded population and nuclear weapons doing nothing?
March 13, 2007 7:36:56 PM

I think eventually it will get more expensive doing business else where, because we are becoming more and more a third world country. :?
March 13, 2007 8:37:16 PM

Quote:
Call me xenophobic, but give me a good reason why North America should be funding the next World War? Do you really think that China is just going to sit there with it's overcrowded population and nuclear weapons doing nothing?


how many wars has china started in the last 20years?

how many wars have the usa started in the last 20 years? ( i am not antiwar eather, i agree with going into iraq but that is not the point)

dont be so fucking stupid
March 13, 2007 8:46:22 PM

Quote:
Call me xenophobic, but give me a good reason why North America should be funding the next World War? Do you really think that China is just going to sit there with it's overcrowded population and nuclear weapons doing nothing?


how many wars has china started in the last 20years?

how many wars have the usa started in the last 20 years? ( i am not antiwar eather, i agree with going into iraq but that is not the point)

dont be so ****** stupid

Hmmm... and over 20 million people were executed in which country over the past 75 years?

Not that I agree with gallag's or HTPCGB comments - just food for thought.
March 13, 2007 8:58:19 PM

This is no different than most things that go on in China. They don't import if you want to sell into the Chinese market you make it in China.

If you really want to curl your hair Westinghouse is selling them 4 nuclear power plants and transfering the technology for future construction.

That's ok though because the French are going to sell them 8 plants and transfer construction technology.
March 13, 2007 9:34:04 PM

Here we go again. American propaganda skewing peoples opinions on another (suprise suprise) Communist country. My God is it so difficult to accept that some people have political ideals that don't adhear to the American Dream?

Which is even more annoying considering that China are changing their ways; you want it all overnight, but more people will die, be tortured and killed before they eventually become a democracy. I find it even more amusing that China don't actually have nuclear weapons - check the facts people - yet India do. They have over a billion people as well and a thriving ecenomy; they are not a problem for you though.

If Intel want to be a global company, they will have to do their work globally. Just because your being so patriotic and living like its still 1980, doesn't mean that Intel have to adhere to your ideals of a company that shouldn't deal with "the bad communists". Need I bring up vietnam? Been working fine there since you lot left.

China is here to stay. America is here to stay. Neither are stupid enough to have a nuclear war. There will not be a World War III unless some stupid protagonist starts it first.
March 13, 2007 9:51:11 PM

Quote:
Because there goes American jobs to a 3rd world country, instead of building the lives of American citizens it's doing just the opposite and strengthing China while American consumers pay for it. And when Wold War 3 breaks out China has our largest technology powerhouse company in its hands to do as it pleases.

Conspiracy? The US should not allow out companies to outsource outside the borders... we should not bring workers in either. Doesn't the American dream only belong to Americans? Not that other countries can't have a China dream of course, but why we would take away from our own country?

I like Intel less because of this. And don't bother bashing my opinion, I won't be back to read it ;) 


America seems to think they can have their cake and eat it.
March 13, 2007 10:19:43 PM

It's a CPU manufacturing plant, people. Not a weapons factory, not a transfer of state secrets, not the start of World War 3. It's one CPU company opening one god-damn factory. Get a grip.
March 13, 2007 10:46:24 PM

No kidding. And if companies could only operate withing their country's boundaries, the entire world's economic growth would slow to a screeching halt.

Be careful, non-Americans, what you say about our country and our people when your own countries have problems of their own lest you sound like hypocrites (which you do).
March 13, 2007 10:53:11 PM

Quote:
That's a really good question. Maybe they're trying to figure out how to tell their employees that their jobs will be outsourced.

I'm j/k, I know Intel does a lot of manufacturing in cheap labor Asian countries. However, the most important part (i.e., die production and R&D, not assembly) has typically been done in non-third world countries (Ireland, Israel, US). Is this Chinese fab more assembly, or are they starting to break the highly paid country model for chip production? If the market is really starting to turn into a commodity market, any US Intel fab based employee better be very scared for their job as I'm sure we'll start to see their jobs exported.



Since when did China become a third-world country again? From the viewpoint of most countries, they are a superpower and one of the U.S.'s biggest trading partner. Not surpisingly, they also have the most Internet users.


AMD has there own foothold in China.
March 13, 2007 10:55:06 PM

Quote:
Be careful, non-Americans, what you say about our country and our people when your own countries have problems of their own lest you sound like hypocrites (which you do).


Eh? The worst comments on this thread have been from xenophobic Americans (or psuedo-Americans, who knows.) Post would have been better, imo, with just the first half.

Quote:
Since when did China become a third-world country again? From the viewpoint of most countries, they are a superpower and one of the U.S.'s biggest trading partner. Not surpisingly, they also have the most Internet users.


China was last a "first-world" country in the 1800s, or ancient times, depending on what way you look at it. Generally, it is considered a third-world country now under development economics. It is certainly developing and industrialising, but the process is far from complete. Look beyond the size of its army and GDP.

For example, its HDI is 80th in the world, ranked equally with Armenia. This puts it behind such bastions of development as Kazakhstan, Lebanon and Libya. 10% of the over-15 population are functionally illiterate. 12% of the population were considered malnourished in 2002. Despite having the world's second highest GDP by PPP, per capita this falls to 80th worldwide. In 2001, 10% of the population were considered to be under the poverty line.

Does any of that sound like a first-world country?
March 13, 2007 11:06:06 PM

I must admit I'm not too keen on putting anything like this in China. I don't like the vast amount of outsourcing to China, either.
March 13, 2007 11:47:27 PM

Quote:

This is the most retarded, dumb, stupid argument I ever heard. You sound just like a neo-nazi. This xenofobic position is something I believe you are proud of, right? I thought so.


Actually he´s not so neo. If you look at the words "National Socialist" you describe exactly what he said.
March 14, 2007 12:07:48 AM

Quote:

China was last a "first-world" country in the 1800s, or ancient times, depending on what way you look at it. Generally, it is considered a third-world country now under development economics. It is certainly developing and industrialising, but the process is far from complete. Look beyond the size of its army and GDP.

For example, its HDI is 80th in the world, ranked equally with Armenia. This puts it behind such bastions of development as Kazakhstan, Lebanon and Libya. 10% of the over-15 population are functionally illiterate. 12% of the population were considered malnourished in 2002. Despite having the world's second highest GDP by PPP, per capita this falls to 80th worldwide. In 2001, 10% of the population were considered to be under the poverty line.

Does any of that sound like a first-world country?


Your argument is quite single-sided and thus flawed. Turkeys HDI is worse than Chinas and i wouldn´t dare to call them a third world country. 12% of the US Population are considered to be below the poverty line. Does that mean the US is a 3rd world country too?
The amount of money Lebanon gets from the EU and other nations to help develop and rebuild makes me wonder why anyone over there is working at all...
March 14, 2007 1:12:00 AM

OK,Intel its just outsourcing and thats it :? , it would be stupid if they would build the factory in the US because of the high cost of manual labor. TThey are other countries that do the exact same thing but at a lower cost and thats great for a company and for the consumer , because we can get better and cheaper things.

You have to stop thinking that USA is the center of the world , think globally or you'll end up being the promoter of pointless wars or a 3rd world war. :roll:
March 14, 2007 1:31:30 AM

Quote:
Because there goes American jobs to a 3rd world country, instead of building the lives of American citizens it's doing just the opposite and strengthing China while American consumers pay for it. And when Wold War 3 breaks out China has our largest technology powerhouse company in its hands to do as it pleases.

Conspiracy? The US should not allow out companies to outsource outside the borders... we should not bring workers in either. Doesn't the American dream only belong to Americans? Not that other countries can't have a China dream of course, but why we would take away from our own country?

I like Intel less because of this. And don't bother bashing my opinion, I won't be back to read it ;) 


...that is the biggest load of bulldust I have ever read.

The Chinese fab will be used to mostly sell microprocessors to Chinese computers and some chipset/NAND parts to the rest of the world. It's costing Intel too much to ship goods from the USA/Israel/Ireland to China, so they decided to move the fab to China. Big deal.
Also, what will the Chinese government do in WWIII with an Intel fab? Throw processors at the enemy? Please...

You can't stop outsourcing, otherwise many companies who operate on a worldwide profile will have to deal with losses beyond imagination! Think how much Intel will be forced to pay for shipping costs to ship products from the USA to other countries. The expenses will be huge, and guess what'll happen then? Cost push inflation, you dolt.

Learn some damn economics or accounting or something, clue up and come back with a valid arguement.

This also goes to anyone else thinking like this guy.
March 14, 2007 2:21:45 PM

What's even more funny, all their customer support positions are hired from India. :roll: :lol: 
March 14, 2007 2:34:26 PM

Not to mention that oftentimes, Americans are hired to go overseas to work in various countries that companies moved to. I'm sure there are going to be a number of Americans working in China, though the majority, I'm sure, will be Chinese. Nothing wrong with that.

Besides, there are plenty of jobs here in America that some Americans refuse to do because the jobs are "beneath" them. So, they sit on their butts and collect government benefits. Then they complain that the Mexicans are taking all of our jobs. Well, somebody's got to do those jobs.

As I stated above, if companies could only do business withing their country's borders, the world economy would screech to a halt and then nobody would have jobs. International business is crucial to economic growth. For some markets, America is simply too saturated to remain only in America. If those companies can't grow, material costs continue to rise and workers keep demanding more pay, the company loses its ability to be competetive and has to start laying off employees. To combat this and remain competetive, companies will seek ways to cut costs and improve efficiency instead of laying off employees. Sometimes that means expanding operations to another country. Americans don't lose their jobs and we create jobs and opportunities in other countries. Other countries do the same here. Take the car manufacturers like Honda and Toyota. They have plants here in America that give Americans more opportunities.

Gotta think more globally and with a bigger picture. Long gone are the days when isolationism can function well.
March 14, 2007 3:05:34 PM

Turkey is an emerging market, but they are still a developing country. So, what you "dare" to say is somewhat irrelevant.

Poverty can be two things : relative or absolute. Relative poverty is essentially inevitable, and occurs in every country. Absolute poverty is not inevitable, and occurs mainly in developing countries. You've mixed up the two when comparing figures.

Lebanon... not sure of the relevance.
March 14, 2007 7:19:25 PM

wonder how long it will be before we get knock-off/half priced Intel CPU's coming back to the US from the Chinese black market? :lol: 

Hell, they are already stealing nuclear secrets right out from under our noses. Perhaps some people just dont see the writing on the wall until its too late these days.
March 14, 2007 7:27:00 PM

Quote:
You can't stop outsourcing, otherwise many companies who operate on a worldwide profile will have to deal with losses beyond imagination! Think how much Intel will be forced to pay for shipping costs to ship products from the USA to other countries. The expenses will be huge, and guess what'll happen then? Cost push inflation, you dolt.

Learn some damn economics or accounting or something, clue up and come back with a valid arguement.

This also goes to anyone else thinking like this guy.

UH OH watch out for those sky rocket shipping prices.

Heres a good one for you to explain. I just bought a replacement battery for my cell phone, similar weight to a CPU. Guess where it came from, HONG KONG!!! Shipping price, $5, got here in 4 days.

WATCH OUT FOR THOSE KILLER SHIPPING PRICES!! [/Sarcasm] :lol: 
March 15, 2007 12:44:20 AM

Quote:
Here we go again. American propaganda skewing peoples opinions on another (suprise suprise) Communist country. My God is it so difficult to accept that some people have political ideals that don't adhear to the American Dream?

Which is even more annoying considering that China are changing their ways; you want it all overnight, but more people will die, be tortured and killed before they eventually become a democracy. I find it even more amusing that China don't actually have nuclear weapons - check the facts people - yet India do. They have over a billion people as well and a thriving ecenomy; they are not a problem for you though.

If Intel want to be a global company, they will have to do their work globally. Just because your being so patriotic and living like its still 1980, doesn't mean that Intel have to adhere to your ideals of a company that shouldn't deal with "the bad communists". Need I bring up vietnam? Been working fine there since you lot left.

China is here to stay. America is here to stay. Neither are stupid enough to have a nuclear war. There will not be a World War III unless some stupid protagonist starts it first.


Read a post before you reply AND get YOUR facts straight.

China operates a very closed economy. If you want to sell in China you have to maufacture in China no propoganda no political ideals just the facts.

Westinghouse is building nuclear power plants , so where do you get off translating that to nuclear weapons. China has over a hundred nuclear weapons already they tested their first nuclear weapon in 1964 should have taken you about 4 seconds of research to find that out.

http://www.atomicforum.org/china/china.html
http://www.globalsecurity.org/wmd/world/china/nuke.htm

As for the rest of your left wing communist party anti-American rant take it somewhere else we aren't interested this is about hardware.
March 16, 2007 2:49:17 PM

Quote:
Read a post before you reply AND get YOUR facts straight.

China operates a very closed economy. If you want to sell in China you have to maufacture in China no propoganda no political ideals just the facts.

Wonder how they got all those Intel and AMD processors over there now with such a closed economy. :roll:

Sounds more like a selectively closed economy. Apparently if they want something bad enough, the doors magically open.
:arrow: (this way to side door for processors)
March 16, 2007 9:02:02 PM

So F23 is currently up for sale. F17 could also face a sale, as well as Intel's D2 facility if they get serious about dumping NOR flash or moving it to 300mm. Meanwhile a new fab expected in China. These seem at least somewhat related.

The fabs at clustered sites (OR, AZ, NM, Ireland, Israel) will probably stay alive, but who knows?

I'm not saying Intel's evacuating expensive countries - I'm just saying they might be testing the waters to see if relocation is a good idea.
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