The Chinese government has given Intel the go-ahead to build a $2.5 billion fab in northern China. The fab will make 12-inch wafers based on 90nm process technology, and it will be used to produce processors and chipsets. The plan calls for the fab to be in the city of Dalian. Intel building a fab in China would signal a loosening of export control policy, and allow US semiconductor gear makers to increase sales to China. China is Intel's second largest market behind the US, so there is good reason for the company to consider putting a plant here. Chipsets would be a way to experiment with advanced production here. Currently, Intel also farms out some of its chipset production to Asian foundries.

Ehrmm...I expect this fab will take some time to build...which processors exactly will it be producing, I thought intel had switched to 65 nm everywhere...