Intel announced two years ago its intention to invest $2.5 billion to build a 300-mm fab in the northern Chinese city of Dalian. The fab, to be the No. 1 chipmaker's first in China, was initially slated to use 90-nanometer technology to make chipsets.

Intel spokesman Chuck Mulloy said via email Thursday (March 12) that there has been no change in plans for Dalian. The company still plans to make chipsets there, starting at 90-nm, he said. But he noted that Intel has a license for 65-nm and said the company would make a final decision on the technology node later.

Intel will begin equipment installation later this year and expects production to begin in 2010, most likely late in the year, Mulloy said.

Sources within the equipment community, who asked not to be identified, told EE Times that the schedule for the fab had been pushed out by at least three to six months. These sources say there has been some question within the equipment community about whether the project will go forward at all.

"Keep in mind that this is our first new fab at a new site in about 20 years," Mulloy said. "We are being very deliberate as we bring it online."

Risto Puhakka, president of semiconductor industry research firm VLSI Research Inc., said he has not heard anything about a delay at Dalian and does not buy speculation that the project could be cancelled.

Others believe there are growing signs of a fab delay. One source said Intel recently cancelled a scheduled planning conference with suppliers about the Dalian fab, blaming supplier travel budget restrictions. Tool move in dates for the fab have been pushed out by about six months, the source said.