The upgrading project is to be completed by the end of this year and become operational early next year, says Craig Barrett, chief executive officer of Intel.

As Intel's first production base in China, the factory was built in August 2000 at Waigaoqiao Bonded Zone in Pudong. It produces flash accumulators used in mobile phones and digital cameras. It has proved to be the most advanced and competitive among the four similar factories Intel has set up around the world.

Last September, Intel added US$302 million in investment to import up-to-date technology and equipment from abroad. The latest investment will be used to build more workshops and make initial technological upgrading to pave the way for the production of more advanced products.

Barrett predicted China would be the world's second largest semi-conductor market by 2010 and pledged Intel would steadily increase its investment in China to cope with the growth of the Chinese market.

(eastday.com May 21, 2002)