Chips in China
Intel is planning to invest US$3.5 billion for the next three to five years in order to turn its semiconductor assembly plant located in Dalian, China into a next-generation memory manufacturing facility. The total investment in the facility is estimated to be US$5.5 billion at the moment when the process is completed.
This is the first time that Intel will build its most advanced manufacturing facility outside of the United States. According to the company’s plan, the facility in Dalian is to produce its next-generation business items, including memory chips, for use in the Optane SSD from the second half of next year.
Intel has paid more attention to the Chinese market than other semiconductor companies. It currently owns 20 percent of the shares of the chip division of China’s state-owned Tsinghua Unigroup and has formed technology and foundry production partnerships with Spreadtrum, a subsidiary of Tsinghua Unigroup and a dark horse of the global mobile application processor market.
In the meantime, Samsung Electronics is producing an increasing amount of 3D NAND flash memory in Xi’an, China as well. Specifically, the monthly average wafer output was 10,000 to 20,000 last year, but the figure is estimated to have reached 50,000 in the third quarter of this year and reach 100,000 in 2016, which is equivalent to 30 percent of Samsung Electronics’ total NAND flash memory production. Likewise, SK Hynix is currently producing 50 percent of its DRAM in Wuxi, China.