Intel to build new US factory

Intel has announced plans to build a second 300mm wafer fabrication facility in Arizona to increase the capacity of its US operations.

The US$3 billion project is set to be completed in the second half of 2007 and would be Intel's sixth 300mm facility. It would manufacture chips based on 45 nanometre process technology.

 “This investment positions our manufacturing network for future growth to support our platform initiatives and will give us additional supply flexibility across a range of products,” said Paul Otellini, Intel CEO, in a statement.

A second 300mm factory is already under construction in Arizona and is scheduled to begin operations later this year. An expansion to operations in Ireland would be operational by the first quarter of 2006.

The larger 300mm wafers allowed semiconductors to be produced at a lower cost and with fewer resources than the more widely used 200mm wafers, Intel said. The 300mm wafer fabrication facilities provided the equivalent manufacturing capacity of about eight 200mm factories, the according to the company.

In further Intel news, the company has also announced that it would be investing US$105 million to convert an inactive facility in New Mexico to a component temporary test facility.