Intel expanding operations in China

Intel expanding operations in China

China does it again. The cheap labor and corporate friendly laws means that more multinational corporations are finding it lucrative to expand their businesses in this country with the largest population in the world. Now, microprocessor giant Intel has announced their plans to open their second assembly plant in the Chinese province of Sichuan. They would also be doing testing of semi-conductor products in these plants.

Intel started their first plant in China way back in August 2 years back and with this latest announcement, their total investment in this Asian country is around USD 450 million. Intel Products (Chengdu) Ltd. would be taking care of the construction and operations of the plant, which would handle assembly, and testing of Intel’s most advanced microprocessors.

A senior Intel representative said in a statement to the media: “This project will bring Intel’s latest products and assembly and testing process technology to Chengdu. It is a sign of our continued confidence in our ability to do business effectively in western China.” Intel’s first factory is almost complete and due to start functioning in the second half of 2005.

Both these plants are expected to employ around 600 workers. Other Intel assembling and testing sites are present in locations like Penang and Kulim, Malaysia; Cavite, Philippines; San Jose; and Costa Rica. Intel does not expect these sites to get affected by the latest development in the China considering the huge demand of processors, which easily meet the supplies.