Intel To Produce Chips In China

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As reported earlier, the plant will be located in an industrial rust-belt hub in northeast China called Dalian in the Liaoning Province and will cost around $2.5 billion to build. The Chinese government is providing financial incentives to Intel, according to company spokesman Chuck Mulloy, and has built up the infrastructure around the city. Chips will start coming out of the factory in the first half of 2010. Initially, Intel will make chipsets--which shuttle data back and forth across the processor to the microprocessor of the computer--and possibly communications chips.