Intel has announced that it may invest up to $5.5 Billion to manufacture memory chips in China. The money will be spent on converting Intel’s first Chinese facility, located in Dalian, to start producing 3-D NAND, versus the semiconductors that are currently produced there. Initially Intel planned on keeping the factory behind the production of its other facilities, but now states that it plans on making its Dalian facility a leading-edge factory.
Intel has announced that it may invest up to $5.5 Billion to manufacture memory chips in China. The money will be spent on converting Intel’s first Chinese facility, located in Dalian, to start producing 3-D NAND, versus the semiconductors that are currently produced there. Initially Intel planned on keeping the factory behind the production of its other facilities, but now states that it plans on making its Dalian facility a leading-edge factory.
This announced investment shows a shift from Intel to start producing its own NAND chips. Up until now, Intel has been jointly developing NAND with Micron including 3D NAND and the upcoming 3D XPoint. While this move to independence from Intel makes some speculate on its future partnership with Micron, Micron and Intel were quick to state that the two companies will remain close partners and Micron may use this new facility as a potential future component supplier.
One other factor that is most likely guiding this decision is location. According to TrendForce, China is set to consume nearly a third of all NAND flash this year or $6.67 Billion. China has been looking for a way to increase its consumption of technology without relying so heavily on foreign suppliers. The location of the new NAND facility allows Intel to easily capitalize on China’s consumption of NAND.
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