Intel to invest $50 million in research center in China Grove is confident despite Asian slowdown

May 06, 1998|By BLOOMBERG NEWS

BEIJING -- Intel Corp., the world's largest semiconductor maker, will invest $50 million during the next five years to establish a new information technology research center in Beijing, its chief executive said.

The Intel China Research Center will develop Internet-related technology, including speech recognition, with particular relevance to Chinese applications, said Andrew Grove, Intel's chairman and chief executive. Intel also will channel research money to Chinese institutions and universities.

Intel is making the investment in China at a time when Asia's personal computer market is slowing, along with the region's economy. Asia accounts for about one-third of Intel's sales.

"I don't think the Asian situation is likely to be remedied in a very quick order," Grove said at a news conference. He didn't forecast when the market will rebound.

Still, Grove said he's confident about China, where personal computer use has been rising by 40 percent a year in recent years.

"We think China's going to be a very large and very important market," Grove said. "That long-term belief is what drives our participation here."

Grove will travel to Shanghai this week to dedicate the company's new $200 million semi-conductor plant in the city, complete ahead of time. The plant is Intel's largest foray so far into China.

Pub Date: 5/06/98

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