Intel moving assembly operations from Shanghai to Sichuan

Intel also intends to increase investment in the Dalian factory, to equip it with the latest available advanced microprocessor technology.

The notice said Shanghai would remain its core research and development base in China, as well as its regional headquarters. Other Intel factories and projects would proceed as planned.

The company also said it would increase its registered capital by 110 million U.S. dollars in Intel China Ltd., the company's investment holding firm in Shanghai.

"The plans are expected to enhance the capacity of the Chengdu plant, optimize manufacturing resources and consolidate Intel's operations in China," said Nancy Zhang, director of the public relations group.

"Intel has been very prudent in making decisions. The proposed policy changes demonstrate Intel's deep-rooted confidence in the Chinese market," she said.

She said she could not give further details about the planned changes.

Shanghai municipal commission of commerce said Intel has submitted an application to the Ministry of Commerce for recognizing Intel China Ltd. as a national-level headquarters. The company had been ratified by the Shanghai authority as Intel China's regional headquarters before.

However, Nancy Zhang said she had no information about this.

According to Shanghai's preferential policy taking effect last December, a foreign company could get a 5-million-yuan (over 731,000 U.S. dollars) subsidy for opening regional headquarters in the city and more than 2.6 million yuan for renting offices in three years. The opening subsidy could rise to 10 million yuan if the headquarters get recognition from the Ministry of Commerce.

Editor:Liu Anqi