Intel Corp.’s first manufacturing plant in China this week started operations. Initially the fab will produce affordable core-logic sets using not really advanced process technology, but eventually the situation may change.

“For 25 years now, Intel has been investing and innovating in China with China and for China. This manufacturing facility helps deliver on our vision to contribute to sustainable growth in China while giving us better proximity to serve our customers in Asia," said Paul Otellini, chief executive officer of Intel, reports Reuters news-agency.

The plant located in Dalian, China, will produce various chipsets for desktops, laptops and servers using 65nm process technology, which is not used for modern core-logic sets. The fab will process 300mm wafers and will have about 1500 workers when it reaches full capacity.

Given the fact that virtually all makers of mainboards are located in China and the region badly needs lowest possible prices on hardware, which can be achieved by locating chip manufacturing plants near motherboard production facilities.

It is noteworthy that the world’s largest maker of microprocessors and chipsets has established plant in China, the country that struggled for a modern semiconductor facility. Although 65nm is not a new process technology, eventually Intel will have to upgrade the fab to 45nm, 32nm and so on to keep it competitive.

Tags: Intel, 65nm