U.S. chip giant Intel Corp. is toannounce on Monday its plan to build a 2.5-billion-US-dollar plantin Dalian, a port city in northeast China's Liaoning Province, thelocal government of Dalian said.

Intel's Chief Executive Officer Paul Otellini is expected to attend the project's signing ceremony at the Great Hall of the People in downtown Beijing later on Monday morning.

The new plant will produce 12-inch (300-millimetre) integrated wafer. Intel now operates such factories in the United States, Ireland and Israel.

Intel, which has invested about one billion U.S. dollars in China so far, already has assembly and test operations in the eastern municipality of Shanghai and Chengdu City in the southwest.