Intel to invest $1.6 billion in China factory

An employee walks past an Intel logo during the 2014 Computex exhibition at the TWTC Nangang exhibition hall in Taipei June 3, 2014

Intel Corp (INTC.O) will invest $1.6 billion to upgrade its factory in the city of Chengdu in western China, the latest sign of how the chipmaker is deepening ties in a market that is proving increasingly troublesome for some U.S. technology peers.