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Has India Missed Intel By 300 Millimeter?
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Intel is opening a fabrication facility in China, will this announcement dim the prospects of a fab in India?
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Monday, March 26, 2007:
Intel has announced plans to build a 300-millimeter (mm) wafer fabrication facility in the coastal northeast China city of Dalian in Liaoning Province. The factory-designated Fab 68 with $2.5 billion investment will become Intel's first wafer fab in Asia and add significant investment to Intel's existing operations in China.
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For a long time, the rumours were rife that Intel was contemplating a fab in India, but due to lack of concrete semiconductor policy, the company was silent over such reports. India has already lost Intel to Vietnam, as the company is opening a facility in Vietnam instead of India due to delay in decision over the policy by the Government of India. The latest announcement might cloud prospects of such fab unit in India, despite the fact that the much awaited semiconductor policy has been notified by the Indian Government.
Commenting on the announcement, Paul Otellini, president and CEO, Intel, said, "China is our fastest growing major market and we believe it's critical that we invest in markets that will provide for future growth to better serve our customers. Fab 68 will be our first new wafer fab at a new site in 15 years. Intel has been involved in China for more than 22 years and over that time we’ve invested in excess of $1.3 billion in assembly test facilities and research and development. This new investment will bring our total to just under $4 billion, making Intel one of the largest foreign investors in China."
"This is one of the major cooperative projects between China and the United States in the area of integrated circuits manufacturing in recent years. The project will further strengthen Intel's leadership position in the semiconductor manufacturing in the world. At the same time, the investment in Dalian will have a positive impact to the regional economic development and the development of integrated circuits industry in the old industrial base of northeast China," said Zhang Xiaoqiang, vice chairman, National Development and Reform Commission.
When completed, Fab 68 will become part of Intel's manufacturing network that includes eight 300mm factories in 2010, with other fabs located in the United States, Ireland and Israel. Manufacturing with 300mm wafers increases the ability to produce semiconductors at a lower cost compared with more commonly used 200mm (eight-inch) wafers. The bigger wafers lower production cost per chip while diminishing overall use of resources. Using 300mm manufacturing technology consumes 40 per cent less energy and water per chip than a 200mm wafer factory.
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