Intel to invest US$300M in Shanghai plant

Intel plans to invest US$302 million in its A5T5 test and assembly plant in Shanghai, Intel spokeswoman Alison Wesley confirmed Friday. The announcement of the investment comes as Intel prepares the plant for test and assembly operations for the 845 chip set, she said.

Constructed with an initial $198 million investment, the A5T5 plant began operations in 1988 producing flash memory chips. The $302 million investment, which will be completed in 2004, is being done to allow test and assembly of 845 chip sets, Wesley said. In addition to the 845 chip set, Intel continues to test and assemble flash memory chips at the plant, she said.

The 845 chip set began shipping to end users earlier this month. Unlike other chip sets designed to be used with Intel's Pentium 4 processor, the 845 supports SDRAM (synchronous dynamic random access memory), rather than the more expensive, and slightly faster, RDRAM (Rambus dynamic random access memory). A version of the 845 that supports DDR SDRAM (double data rate SDRAM), which is also cheaper than RDRAM, is expected to begin shipping to end users early next year, according to Intel.

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