Locations -- Suzhou, China

Plant Fairchild Semiconductor International Inc. in March began construction of an 800,000-square-foot manufacturing plant and automated warehouse in Suzhou, China. It's the first factory completely constructed by South Portland, Maine-based Fairchild since becoming an independent entity almost five years ago. Construction will come in two phases, starting with a two-story 120,000-square-foot assembly and test facility that is scheduled for equipment installation in the summer of 2003. Upon completion of the first plant, Fairchild will begin a 280,000-square-foot expansion. An additional 400,000 square-foot factory space will be added in 2004. The plant will employ up to 3,000 people -- 20% of them technical staff -- to assemble and test a broad range of logic, discrete and analog products. Total investment for the project is estimated at US$200 million including the purchase of one million square feet of land, and construction and tooling costs. Corporate Strategy Fairchild expects to more than double sales in Asia from the $200 million posted in 2001 by focusing on 10 key markets driving growth in China: home appliances, monitors, audio/video, charger/adaptor, power supplies, telecommunications infrastructure, PDAs, color TVs, mobile phones, and PCs. China's semiconductor consumption reached $13.1 billion in 2000, and is expected to increase at a 9.9% CAGR from 2000 through 2005, reaching $21 billion. The new factory, in keeping with the company's global strategy, will produce products for both the China market and for export to the rest of Asia, Europe and the Americas. Fairchild, along with all other companies investing in the China-Singapore Suzhou Industrial Park, was awarded the same status as the five Special Economic Zones and Pudong; this includes a corporate tax rate of 15% (instead of the national average of 33%), tax exemptions and rebates. The company also intends to add design laboratories and offices in key cities in China. Production Strategy China is the cornerstone of Fairchild's expansion plans for Asia, and the plant will support predicted growth in the China market, reduce outsourcing dependency, lower and effectively control manufacturing costs, support production of new products, improve manufacturing flexibility, and consolidate the back-end manufacturing of similar package types from several other locations. Community The China-Singapore Suzhou Industrial Park is east of the ancient city of Suzhou at the intersection of China's two vibrant economic belts -- The Coastal Economic Belt and Yangtze River Economic Belt -- and 80 kilometers (50 miles) west of Shanghai. Suzhou is one of the most affluent cities in China; in 1998 the city boasted a per capita GDP of RMB 21,726 ($2,618). State highways and the Beijing-Hangzhou Grand Canal provide links to major cities. Locations profiles selected siting and facility strategies by manufacturing companies. Send submissions for Locations to Senior Editor John S. McClenahen at [email protected].