Intel Corp announced it could invest up to $5.5 billion in a plant in China, dedicated to manufacturing semiconductors. The firm is looking for ways to up revenue while its core computer processing chips sales lose steam.
Intel is looking at converting a facility in Dalian, where it would make advanced memory chips called 3D NAND chips, starting in the latter half of 2016.
Various other companies involved in the semiconductor industry have made their own global expansions as China is predicted to use several billion dollars’ worth of NAND chips this year, as it works to bring up its own economy.
The potential deal between Intel and China is just one sign of a booming semiconductor market. All aspects of this industry are in demand, from die attach products to barrier coatings and optical isolators. More and more applications and products require heavy duty semiconductor support, and companies are looking to increase their capacity to produce the semiconductors their clients need.
If Intel does invest in a plant in China they will likely see success, as recent research has shown that semiconductor sales will only grow in the next several years. It makes sense that tech giants are moving toward investing in this particular product, knowing that industries from health care to auto manufacturing will need semiconductors and related products.
While Intel has not made any type of official announcement about the potential plant as of yet, aside from indicating they may invest, this is a business deal worth watching if you are interested in the semiconductor industry. Intel may set the stage for other tech giants to make similar moves, which could drastically change the market.
When larger companies invest in memory chips it helps with innovation, as they are likely to invest in research and development as well. This means consumers and manufacturers alike will benefit from better products with faster technology, leading to more robust devices and products that require less energy to run.
These major investments may also cut down on the prices of some high tech semiconductor products, as the research and innovation shows manufacturers where they can cut costs to make their products more attainable for all industries.
By keeping an eye on the potential Intel deal, you will be able to see history in the making, and get a better idea of industry trends.