Intel Corp. is going to invest $1.6 billion to upgrade its Chengdu chip factory in China’s Sichuan Province within the next 15 years.
The computer chip maker said that it plans on upgrading technology at the factory, in addition to enhancing its assembly operations and die preparation.
The company will receive local and regional government support for construction.
Intel said that the investment represents a step forward in expanding its communication and computing sectors, particularly its mobile devices business.
The US tech company is planning to significantly expand its mobile sector in China.
“Deploying our newest advanced testing technology in China shows our commitment to innovating jointly with China,” Intel executive vice president William Holt said in the statement. “The fully upgraded Chengdu plant will help the Chinese semiconductor industry and boost regional economic growth.”
Intel has already invested $600 million in the Chengdu site, which started operating in 2005.
According to Yibada, Bian Chenggang, Intel Chengdu general manager, believes that the new investment will help in the development of Sichuan Province’s supply chain, bring in new talents and boost growth for the local technology ecosystem.
Accenture Technology Labs managing director Liu Dong said:
“An increasingly open market will also help the Chinese IC industry grow and catch up with the global market,”