I disagree. I think it was done for business reasons, not technological reasons. But, I am not familiar with what they do in that plant.
That is a valid reason, indeed. But, again, it was based on the tech-side of that aforementioned business model. INTEL Does not only make CPU products. They are also one of the biggest, if not THE biggest, R&D firms for the IT industry, and they simply cannot sustain an overseas oepration with people "merely placing chips on the conveyor for $1 an hour". It is far more complicated than that.
For a local (American) example, I will offer up Texas Instruments, as a viable example of this behavior. They make MANY things besides chips. A person has to know a large sum more than just "how to enter the fab, de-con, and sit at the table with the trays of chips. Some departments require Class-C security clearance, for ordnance dev, etc.
No company that wants to sustain itself would build such enterprises in a land where the average person is a highschool-dropout equivalent.
In Japan, as was mentioned a minute ago in another post, Technology borders on religious ZEAL to those people. They prize tech achievement above all else. This is a trend that has only heightened with the advent of the net, and access to thought schools outside the mainstream.