jump to navigation

North-East Asian Semi-Conductor Industry: China Wants In January 23, 2007

Posted by David in North-East Asia.

On January 18, 2007 The International Herald Tribune reported that US based Intel had received approval from China to build a semi-conductor manufacturing plant in the Dalian Economic and Technological Development Zone.

Of course, this all depends on the types of counter-incentives India will be offering the chip-maker, and what kind of restrictions the US would impose on the company (in terms of export controls) if it decided to settle in China.

However, if it ends up Chinabound, Intel will be joining the Taiwan Semiconductor Manufacturing Company and South Koreas Hynix.

The plant, which may make computer processor chips, may cost $3 billion to $3.5 billion to build, said Rick Hsu, an analyst at Nomura Securities in Taipei. China undoubtedly looks forward to having Intel since according to the article it will have a cluster effect and attract, other technology-related investments.

And speaking of semi-conductors, the Taipei Times reported today that Japans Dai Nippon Printing plans to invest ¥20 billion in producing semiconductor parts in Taiwan. Apparently Dai Nippon Printing has already bought land in northern Taiwan to build a new factory to produce photomasks (used to print circuits on wafers).

Construction should begin this Spring, and the plant is scheduled to start operating in 2008. Sales at the plant are projected at ¥5 billion for the year to March 2009 and ¥12 billion the following year.

In all honesty, I know next-to-nothing about the field of semi-conductors, but during the brief research that went into writing this particular post I did notice that it seems to be dominated by North-East Asian companies, most notably, Japan, South Korea and Taiwan. This explains why China is eager to get a bigger share of the pie.



No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: