Intel To Invest Up To $1.5 Billion In Nanometer Factory In New Mexico

Intel will invest up to $1.5 billion in its Rio Rancho, N.M., site to begin production in its 45 nanometer

Intel Corp. said it will invest $1 billion to $1.5 billion in its Rio Rancho, N.M., site to retool for production on its next generation 45 nanometer (nm) manufacturing process.

The Rio Rancho site will be the company's fourth factory scheduled to use the 45nm process, with production in New Mexico scheduled to start in the second half of next year.

Intel is calling the 45nm process one of the biggest advancements in fundamental transistor design in 40 years. The high-k (dielectric constant) and metal gate process consists of new transistor materials that drastically reduce transistor leakage and increase performance.

"Our new 45 nanometer 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," said Paul Otellini, Intel's president and chief executive officer. "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 45nm products will be done at its Oregon development fab, D1D. The company is currently building two other factories that will use the 45nm 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 in early 2008.

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