Bob Johnson, an analyst from market research company Gartner, says that the Chinese government might have offered a US$1 billion incentive as well as some other preferential offerings to Intel (INTC) to encourage Intel to build its chip factory in Dalian in China's northeast Liaoning Province.

Local report that Johnson says that other preferential measures that the Chinese government offered to Intel may include lower project fees and allowing Intel to move equipment from another factory. Johnson believes that though the means of building the Dalian factory is different from Intel's usual practice, it conforms with the company's principle of achieving maximum benefit from its investments.

Earlier, Nick Jacobs, a spokesperson from Intel, said that obtaining incentives had become a common practice for Intel to make investments in the semiconductor sector, but the company wouldn't disclose the detailed amount of funds they might have received.

1 COMMENT

  1. Does the Chinesse govt protect the technology the manufacturere moves to their country? Is this a scam to let Chinesse manufacturers copy and produce the same products (or copies of the same product) to supply to their own country and capture more of the profit internally?
    How big a problem is this?

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