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MANUFACTURING Just Call Shanghai "Silicon Seaport' U.S. tech firms press ahead on plans to build billion-dollar plants in China.(A)
By James DeTar
Investor's Business Daily
As chipmakers pare back expansion plans, there's one place where new chip plants are still sprouting: China.
Taiwan's already the world leader in chip contract manufacturers, or foundries. Now mainland China wants a piece of the action.
U.S. companies are spending billions to set up chip foundries there -- attracted to the cheap labor and proximity to so many potential customers.
"China is a huge market," said Sohrab Kianian, director of business development at Silicon Storage Technology Inc. The Sunnyvale, Calif.-based flash chipmaker plans to invest $60 million in China this year.
"PCs, consumer electronics and wireless products are all being outsourced for manufacture in China," Kianian said.
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