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Mr. Kircos played down the scope of the deal and the notion that Intel had become a contract chip maker.
Essentially, Advanced Technology has bought scale and capacity -- the two most prized possessions for a contract chip maker.
Advanced Micro Devices, the No. 2 maker of microprocessors for personal computers, said today that it had entered a broad manufacturing alliance with the United Microelectronics Corporation, a contract chip maker.
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This week, the government committed an additional $3.9 billion, in cash and the assumption of debt, toward the purchase of a Singaporean contract chip maker, Chartered Semiconductor.
IBM has a sizable contract chip manufacturing business, where it builds chips of all types for other chip companies.
ARM chips, by contrast, are made by a handful of contract chip manufacturers and cost 65 cents to $20 each.
By the late 1990's his company and a handful of other contract chip makers nearly caught up with the technology of established full-range makers like Intel and I.B.M.
SMIC is the fifth-largest contract chip manufacturer, or "foundry" in chip industry shorthand, and reported a $66 million loss on sales of $365 million for 2003.
TSMC, the world's largest contract chip maker, has sued China's SMIC for patent infringement, a move analysts said could hit the smaller rival's plans to raise funds overseas next year.
China continues to invest in contract chip makers as well.
The company produces more chips than any other "foundry," or contract chip manufacturer.
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CEO of Professional Science Editing for Scientists @ prosciediting.com