Intel Unveils Plans To Expand Chengdu Facility In China, Integrating Advanced Chip Packaging Services

Intel has reportedly announced plans to expand existing facilities in China, notably the Chengdu plant, providing enhanced packaging and testing services.

Intel Shifts Focus Towards China, Announcing Extensive Cooperation With Domestic Clients For “Customized” Solutions

Team Blue, which is in a tough financial position for now, has decided to pay attention to its China facilities, although at a pivotal time. The firm’s plans were revealed in an official WeChat post, where Intel disclosed that they plan to expand their Chengdu facility in an attempt to enhance existing applications and upscale production capacities to cater to the needs of Chinese customers. Here is what Intel China’s Chairman, Wang Rui, had to say on this occasion:

China’s continuous promotion of high-quality development and high-level opening up to the outside world are the foundation and driving force for Intel’s long-term development in the Chinese market. Intel’s strategy of being rooted in China and serving customers remains unchanged.

The expansion of the Chengdu base will enable Intel to focus more on local needs, integrate resources, respond more quickly to the digital and green transformation of Chinese customers, and inject new momentum into the sustainable development of the digital economy.

– Intel via WeChat

The expansion plans mainly target packaging and testing for client and server products, given the massive demand Intel faces from domestic clients. It is reported via ESM China that Intel’s Chengdu facility is one of the company’s largest chip packaging and testing centers in the world and has now been framed into a major wafer pre-processing factory. Over half of Intel’s microprocessors come from this facility, so the expansion is simply targeted towards upscaling Team Blue’s business in the region.

Apart from the upgrade of the Chengdu facility, Intel also has plans to create a “Customer Solutions Center” with the intent to promote the digital transformation of enterprises, along with working towards providing customized solutions for its industry clients, allowing for more extensive adoption of processes, ultimately accelerating the firm’s business in the region.

Team Blue’s move comes as China is undergoing a “semiconductor revolution” and has put itself in a position to be a dominant player in the production of “mature nodes.” While the nation is still significantly behind in the race for cutting-edge nodes, its existing facilities have massive production capacities, which have been catering to global demands for now.

We are unaware of how big of a commitment Intel will make to China in the realm of semiconductors, given that company’s closeness to the US, but the Chengdu move does show that Intel isn’t ignoring China at all.