With the approval of China's State Council, the National Development and Reform Commission has accepted Intel's (INTC) plans to build a factory in Dalian to manufacture 65-nano multi-core processors.

Intel will invest about US$2.5 billion into this new factory which is also designed to produce 52000 12-inch and 90-nano integrated circuit chips.

This is the latest move of Intel following its construction of semiconductor sealing and testing factories in Shanghai and Chengdu, respectively, and the factory in Dalian is the first one for Intel's in China that is engaged in chip manufacturing.