Intel invests up to $1.5B to retool fab for 45-nm

By Ann Steffora Mutschler -- Electronic News, 2/26/2007

Chip giant Intel Corp. said today it will invest $1 billion to $1.5 billion to retool its Fab 11X located in Rio Rancho, N.M., for 45-nm manufacturing, making it the company’s fourth factory scheduled to use the 45-nm process. 45-nm production at this site is set to begin in the second half of 2008.

Marking what it says is one of the biggest advancements in fundamental transistor design in 40 years, Intel says its 45-nm high-k and metal gate process consists of a combination of new transistor materials aimed at reducing transistor leakage and increasing performance.

When 45-nm production begins later this year in other facilities, Intel says it will use a new material with a higher-k dielectric constant, along with a new combination of metal materials for the transistor gate electrode.

Early versions of its 45-nm family of products, codenamed “Penryn” are already running multiple operating systems and applications, and Intel says it is on track to begin 45-nm production in the second half of this year.

Paul Otellini, Intel president and CEO said in a statement, “Our new 45-nm process represents one of the most significant manufacturing breakthroughs in decades and we believe that putting it in our factory in New Mexico will help us deliver the best possible products for our customers. Our Rio Rancho site has successfully operated in New Mexico for 27 years. Based on that success, we are pleased to position Fab 11X for Intel's next generation of technology.”

Initial production of Intel's 45-nm products will be done at its Oregon development fab, D1D. The company is currently building two other factories that will use the 45-nm process. The $3 billion Fab 32 in Chandler, Ariz., will begin production late this year; and the $3.5 billion Fab 28 in Kiryat Gat, Israel, will begin production the first half of 2008.

Fab 11X currently manufactures 90-nm computer chips on 300-mm wafers, began production in October 2002 as Intel's first 300-mm manufacturing facility, and was Intel's first fully automated, high volume factory producing 300-mm wafers.