Intel has inked a $2.5bn deal with China's National Development and Reform Commission to build a chip plant in northern China.
The plans suggest that the facility will be based in the city of Dalian, and will produce 12in wafers for CPU chips.
Working at full capacity, the fab is expected to produce 52,000 wafers per month using 90nm technology.
Intel had not made an official announcement on the project at the time of going to press, but reports in January confirmed that the chip giant was in negotiations with officials in the region.
China is the second largest consumer of Intel chips after the US.
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