Intel to invest $1.6b in Chengdu plant

Updated: 2014-12-05 14:27

By Paul Welitzkin in New York and Gao Yuan in Beijing(China Daily USA)

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US-based Intel Corporation is investing $1.6 billion to upgrade a plant in Chengdu in Sichuan province even as the Chinese government conducts investigations into major foreign companies operating in the mainland.

"We have been operating in China for over 40 years and we believe that our business practices are consistent with Chinese law," Chuck Mulloy, Intel spokesman told China Daily Thursday.

Mulloy said the Chengdu plant which has 2,500-3,000 full time employees, is one of three assembly test sites. The others are located in Malaysia and Vietnam.

"We are a global company and half of our wafer manufacturing is done in the US with the other half in Ireland and Israel," Mulloy said. "We believe that China is an important emerging market."

The National Development and Reform Commission, the country's top economic planner, has been investigating US chipmaker Qualcomm for over a year. Media reports in China indicate the company will likely face a fine exceeding $1 billion. Earlier this year the American Chamber of Commerce in China expressed concern over investigations that have scrutinized at least 30 foreign firms, including Microsoft Corp and Jaguar Land Rover.

"The strategic intent is a significant step and an important corporate deployment to enhance Intel's business strategies in all computing and communications segments, particularly mobility business in the tablet, smartphone, Internet of Things, and wearable segments," the company said in a statement.

"By bringing Intel's latest technology to China, we have demonstrated our commitment to innovate with China. The full upgrade of our Chengdu facility will enhance the innovative spirit of the Chinese IT industry as well as drive regional economic growth," said William Holt, executive vice-president and general manager at its technology and manufacturing group.

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