Intel is to invest $2.5 billion to build a microchip plant in northeastern China.
Work on the plant is scheduled to begin later this year on the 300 millimetre wafer fab in Dalian, which will be Intel's first semiconductor plant in Asia, with the production of chipsets to begin in 2010.
Chief executive Paul Otellini said today: "China is our fastest growing major market, and we believe it's critical that we invest in markets that will provide for future growth to better serve our customers."
Chipsets are the collection of secondary chips and interfaces that surround the main processor and will be used in desktop computers, laptops and other electronic devices.