Intel will invest USD5.5 billion in Dalian to transform its existing local plant into a storage chip manufacturing plant.

Intel said that the Dalian plant started operation in 2010 and it will start making storage chips from the second half of 2016. Over the next three to five years, Intel will invest up to USD3.5 billion in this plant and they will increase the investment to USD5.5 billion in the future.

Though most of Intel's operating revenue is from processors, the company also established a storage chip joint venture with Micron Technology. The JV mainly produces NAND flash memory chips used on mobile and computing devices. By changing the storage media from disks to semiconductors, Intel hopes to speed up data processing rates and raise the response speeds of laptops, desktops, and servers.

Intel's storage chips will help the company offset the weakening demand for PC processors.

Micron Technology said that the upgraded Dalian plant may become its storage chip supplier and it is possible for the company to enhance its involvement in the project.



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