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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

Discussion

Comments currently: 4
Discussion started: 10/29/10 02:05:47 AM
Latest comment: 11/02/10 09:57:30 PM
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1. 
I just dont get why they went with 65nm. Why not just start out with whatever is upcoming and get right into it that way? My guess is they wanna see how well the plant can perform and do so on something that is well established by I would still go more modern from the get go.
0 0 [Posted by: iLLz  | Date: 10/29/10 02:05:47 AM]
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And where do you think all that scrapped equipment should be retired if not there. Maybe it'll move to Vietnam after 5yrs

Nice move to popularize itself and to milk more money on obsolete technology.

Does Intel build manufacturing plant in India also?
0 0 [Posted by: OmegaHuman  | Date: 11/02/10 09:52:12 PM]
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2. 
Chipsets are usually manufactured using previous-gen processes. For example, current AMD 8xx chipsets are made on 55nm process, and some of them which are only rebrands of 7xx chipsets are still made on 65nm.
0 0 [Posted by: BernardP  | Date: 10/29/10 08:40:50 AM]
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AMD chipsets design came out from limited R&D. And btw with that approach they're not limited by supply and extremely high prices from buggy TSMC 40nm node :wink: btw2. they produced chipsets on those nodes at least one quarter before any GPU on same nodes came into production.

Althou SB for Ontario/Zacate ITX/nettops is probably already produced in 40nm just as cpus itself.
0 0 [Posted by: OmegaHuman  | Date: 11/02/10 09:57:30 PM]
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