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“Our aim is to build the Chengdu base into our global flagship,”declared Huang Yunfei, when the first Dell factory in Chengdu, capital city of Sichuan Province in southwestern China, went into operations in June.

According to Huang, who is heading up Dell’s whole Chengdu project, the facilities will be equipped with the most advanced production processes and management systems that the world’s leading PC maker can provide. It will include 20-plus production lines for both desktops and laptops for global supply via a logistics network encompassing air, railway, sea and road.

Dell’s operation and ambition are part of the strong position and vision of the electronic and information industry in Chengdu. The city produces 100 million laptops per year, more than anywhere else in the world, one out of every two China-made microchips, and 70 percent of the world’s iPads. 13 out of 20 global leading software companies have established operations there, and nearly half of the world’s Top 500 companies, such as Intel, Microsoft, Lenovo, Wistron, Huawei and Foxconn have set up regional headquarters in Chengdu.

Already integrated into the global high-end supply chain of the IToriented electronics and information industry, Chengdu is prepared to go even further.

Major Deal

In December 2011, Chengdu officially launched a mega-project to build a 1578-sqare kilometer special zone, known as the Tianfu New Area featuring high-end manufacturing concerns, tertiary industries and cosmopolitan residential communities. Tianfu is slated to become one of China’s most important inland platforms for openingup, which facilitates economic and cultural communication between China’s western hinterland and the rest of the world.

At the core of Tianfu are two major bases, one for electronics and IT and the other for auto R&D. Each is expected to contribute output valued at more than hundreds of billions of US dollars. As a result, the total output of the Tianfu New Area is expected to reach about US$106 billion by 2020, rising to US$195 billion by 2030.

Some sectors of the electronic and information industry have al-ready become established in the new zone, in particular integrated circuits, computing, optoelectronic displays, microelectronics and the Internet of things. Global IT giants are particularly interested in building a foothold there.

“The Tianfu New Area’s focus on high-end manufacturing will make a difference to the IT industry,” said Wang Rui, an official with the Chengdu Municipal Government Economic and Information Committee.

A Place to Grow

Investors are attracted to Chengdu by efficient administrative procedures, preferential policies, a rich talent pool, a pleasant environment and great growth potential.

Luo Xiaoyin, a leading figure in musical composition for China’s online gaming industry, is establishing his own studio in the zone.“Orders from Chengdu have been increasing rapidly in recent years because more and more online game developers are coming [here], including major ones from Beijing, Shanghai and Guangzhou,” he explained.

In the mobile network sector, high-end talents like executives and technicians have found the salary gap in the Tianfu zone has narrowed significantly with those in China’s biggest cities. This has partly resulted from supportive fiscal, HR and services policies. About 500 mobile network companies with 20,000 employees have gathered there, covering various services, like telecommunications research, terminal R&D and manufacturing, app development, online payment initiatives and general e-commerce.

According to the zone’s plan, by 2017 its mobile network sector will reach a total value of US$33 billion, with more than 1,000 companies and more than 100,000 personnel working from Tianfu.

Windy Wing Animation is one of many companies attracted by favorable policies. “We got fiscal support when we started up in 2006, and many business communication platforms here are also very helpful for us,” said Windy Wing’s general manager Chen Jinjing, general manager.

“We started by providing services for other companies,” she continued. “Since 2009 we shifted focus to our own projects.” Their efforts have apparently paid off. Their cartoons about a capricious 10-year old girl made in 2010 have proved a great success with readers. Chen and her team are now working on cartoons based on world classics of the genre for their march into the international market, and some new stories will boost their brand building efforts.

Global Appeal

International giants already have a strong presence in Chengdu, and will expand their operations here in the future. By the end of May, Intel had manufactured 1.3 billion processors in the city. “There is one of the world’s largest microchip packaging and testing centers, and one of the three largest wafer pretreatment facilities [in Chengdu],” said Ge Jun, executive director of Intel China. “Half of Intel’s global supply of microprocessors for mobile equipment is from our Chengdu plants. Intel has personally witnessed the fast growth of the IT industry in Chengdu over the years.”

Pian Chenggang, general manager of Intel Chengdu, expressed satisfaction with their experience. “We believe we have made the right decision of operating in Chengdu, and we will continue growing with the city,” he remarked.

Chengdu plays an important role in the global IT market as well as the local economy. It makes 20 percent of the world’s packaged PCs and tests 50 percent of laptops on top of 70 percent of Apple’s tablets. The IT industry created more than US$61 billion in revenue in 2012, compared with less than US$3 billion in 2001. The added value of this revenue contributed 13.7 percent to Chengdu’s GDP growth.

Now Chengdu has become a fully-fledged electronic and information industry center, providing quality services for the whole supply chain on a large scale. In 2012, the output of the electronic and information industry in Chengdu was valued at nearly US$50 billion, accounting for more than one-third of the city’s US$132 billion GDP .

The scale of local industry ranks only behind Beijing, Shanghai and Guangzhou on the Chinese mainland. “Chengdu has become the fourth largest center for the industry in China,” claimed Ye Zhijun, an official with the Chengdu Municipal Government Economic and Information Committee.