CHENGDU, CHINA – Intel said it would invest $1.6 billion to upgrade its chipset manufacturing factory here.

Intel has plans to bring advanced chip-testing technology to China, with local and regional government providing support for construction.

"Deploying our newest advanced testing technology in China shows our commitment to innovating jointly with China," Intel executive VP William Holt said. "The fully upgraded Chengdu plant will help the Chinese semiconductor industry and boost regional economic growth."

Intel previously announced its purchase of a minority stake in a government-controlled semiconductor company to jointly design and distribute mobile chips.