Intel Builds Wafer Fab in China

Intel(INTC Quote) announced plans to build a chip-fabrication facility in China, ending weeks of speculation that the world's No.1 chipmaker was looking East to construct its next major factory.

The $2.5 billion facility, dubbed Fab 68, is slated for completion in 2010 and will feature equipment capable of processing 300-millimeter silicon wafers, more efficient than the the 200-millimeter wafers used by some chipmakers.

The fab will be located in the Northeast coastal city of Dalian, with construction due to begin later this year. ...