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(Xinhua)
Updated: 2007-09-09 09:48

US computer chip giant Intel Corp began on Saturday to build its first chipset plant in Asia, which involves US$2.5 billion in the first stage investment.

Intel Chairman Craig Barrett attended the ground breaking ceremony of the plant, which is located in the Dalian Economic and Technological Development Zone in Northeast China.

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Barrett said at the ceremony that Intel chose Dalian because it is a perfectly suitable location for the plant. "Intel will use its advanced equipment and technology to build an environment-friendly computer chip factory in the city, and promote the semiconductor manufacturing industry in China," he said.

Steel structures and other framework projects have been in place at the factory covering 160,000 square meters.

Kirby Jefferson, general manager of the plant, said they have started recruiting staff from China and overseas, and are concentrating efforts on constructing the new plant.

The project, which was announced in March this year, is Intel's first chipset factory in Asia and part of its network of eight such factories worldwide. The plant will go into production in 2010.

The ceremony was also attended by Zhang Xiaoqiang, vice minister of the National Development and Reform Commission, China's top planning body, and Xia Deren, mayor of Dalian.

"Intel's Dalian plant is a new breakthrough of economic and technological cooperation between China and the United States, and it will also be a push for the development of China's northeast, a former heavy industry base," said Xia.

The city government of Dalian estimates the plant can provide about 1,700 jobs.