Intel today broke ground on its first 300mm wafer fabrication facility in Asia. The new factory, named Fab 68, will extend Intel's manufacturing leadership, while helping cultivate engineering talent, accelerate the growth of China's information technology (IT) ecosystem, and bring Intel's culture of environmental leadership to China. The $2.5 billion project is set to begin construction immediately and be operational in 2010. Fab 68 will cover 163,000 square meters of factory space and host a 15,000 square meter clean room.

"The scope and scale of our global manufacturing network gives Intel the ability to provide customers with leading-edge, energy-efficient products in high volume," said Craig Barrett, Chairman, Intel Corporation. "Fab 68 will have world-class infrastructure and be an integral part of our global manufacturing network while bringing us closer to our customers and partners in China."

"Intel's investment in Fab 68 comes at a time when Dalian's information technology industry is aiming to compete globally and become one of the top three IT clusters in China," said Dalian Mayor Xia Deren. "Fab 68 is not just bringing advanced chipset manufacturing to Dalian, Intel's presence will attract investment from virtually every segment of the IC industry, which in turn will have tremendous effect on the region's economy and industries. It is estimated that many suppliers are planning to follow Intel's lead and establish operations in Dalian. The cluster will help revitalizing the industries in China's Northeast region, and make Dalian rise to be one of the IT hubs in China."

Demonstrating its dedication to sustainable growth in Dalian, Fab 68 will be designed and built to minimize impact on the environment. "Intel has a long history of environmental leadership in our products and operations and we are applying the same world-class design and construction standards in Fab 68 that we apply everywhere in the world," said Kirby Jefferson, General Manager of Fab 68. "The design standards for Fab 68 meet Intel's high standards for environmental performance in all areas including water, energy and chemical waste management."

With its presence in Dalian, Intel plans initiatives aimed at developing the local talent pool. "Local talent development is a key component to our fab network strategy," said Wee Theng Tan, Vice President of Corporate Affairs Group and President of Intel China. "We're partnering with the Dalian University of Technology and the Dalian Municipal Government to establish the Semiconductor Technology Institute and donating a 200 mm wafer process line for training purposes. In the future, this Semiconductor Technology Institute will foster world-class talent for the IT industry in China and around the globe."

Intel investment in Fab 68 sets its total investment in China to close to US$ 4 billion. Intel has established two assembly and test plants in Shanghai and Chengdu, along with R&D centers and labs in Beijing, Shanghai and elsewhere in China.