Dalian plant to help Intel tap China demand

Intel Corp's upgraded chip factory in Dalian, Liaoning province, will help it better tap into China's growing demand for memory chips, but the United States giant needs to be wary of rising competition from local rivals, as the country speeds up efforts to reduce its reliance on foreign technology, experts said.

The Dalian plant, in which Intel said it would invest $5.5 billion, has been converted to produce advanced memory chips such as 3D NAND chips, which can store data without using power and be widely used in smartphones and tablets.

Roger Sheng, research director at consultancy Gartner Inc, said as an increasing number of consumers prefer digital devices with bigger storage capacities, the supply of 3D NAND chips is currently failing to catch up with the growing demand.