Intel Expands Semiconductor Operations in Chengdu with Major Investment

On October 28, Intel, a leading semiconductor giant, announced a significant expansion of its Intel Chengdu Packaging and Testing Facility, adding $300 million to its registered capital at Intel Products (Chengdu) Co., Ltd. According to Chengdu authorities, Intel will extend its packaging and testing services from client products to server chips, setting up a new Customer Solutions Center. Planning and construction for these upgrades have already begun.

Chengdu: Intel’s Largest Global Packaging and Testing Hub

Intel’s Chengdu facility, established over 20 years ago, is one of the company’s largest chip packaging and testing centers, responsible for high-end testing, wafer pre-processing, and mobile processors. The facility handles half of Intel’s global mobile device microprocessor needs, making it a cornerstone of Intel's global operations.

The facility's growth timeline dates back to 2003 when Intel first announced the construction of a packaging and testing plant in Chengdu High-tech West District. By 2005, the initial phase was operational, exporting chips globally. In subsequent years, Intel’s operations expanded to include advanced multi-core processor packaging, distribution capabilities for rapid delivery within western China, and high-end testing technologies introduced through a $1.6 billion investment in 2014. Today, the Chengdu site represents a high-tech manufacturing cluster integrating packaging, wafer pre-processing, and advanced testing.

Since inception, Intel’s Chengdu facility has seen a cumulative investment of over $4 billion and shipped nearly 3 billion chips.

Chengdu’s Growing Role in China’s Semiconductor Industry

Chengdu is now a critical hub in China’s semiconductor sector, hosting industry leaders such as Texas Instruments, SMIC, Huahong, MediaTek, and Huawei’s HiSilicon. The city has developed a full semiconductor industry chain that includes design, manufacturing, packaging, testing, and essential materials. This ecosystem, centered around companies like Intel, boosts China’s role in the global semiconductor landscape.

Booming Semiconductor Packaging and Testing Industry Amid AI Growth

Driven by the rapid expansion of artificial intelligence, the semiconductor packaging and testing sector is flourishing. Industry advances, such as TSMC’s 3DIC technology and China-based YongXi Electronics’ new investments in Fan-out and 3D/2.5D packaging capabilities, are taking center stage. Recent industry updates include:

• ZhiZheng Holdings’ Acquisition: On October 23, ZhiZheng announced plans to acquire a 99.97% stake in AAMI to bolster its semiconductor lead frame business, marking its shift to semiconductor packaging materials from polymer materials.
• AP Power Semiconductor Project in Shanghai: Korean AP Power Semiconductor has signed an agreement to establish a $40 million semiconductor packaging and testing line in Shanghai, enhancing capabilities in wafer testing, grinding, and power module assembly.
• XingSen Technology’s Progress: XingSen recently announced that its Guangzhou FCBGA substrate project has successfully delivered certified samples to customers, maintaining high product yields and expanding in the packaging substrate market.
• IC Online’s Comprehensive Services: IC Online provides customers with high-quality electronic components and offers end-to-end services from design through R&D to production. This one-stop solution enables clients to bring their designs to life faster, helping them secure a competitive edge in the market.

The semiconductor packaging and testing industry is essential for ensuring chip quality and performance, particularly with the increasing demands from AI-driven technologies. As new advancements continue to emerge, the sector is poised for sustained growth, elevating the standards and capacities of 3D packaging, system-in-package (SiP), and other cutting-edge technologies.