SAN JOSE, Calif. - Continuing its aggressive fab expansion efforts, Intel Corp. on Friday (Feb. 18) announced plans to invest more than $5 billion to build a new chip manufacturing facility at its site in Chandler, Ariz.
Initially, Intel's new Arizona factory, designated Fab 42, will bea 300-mm plant. It will also be compatible for 450-mm-if or when that wafer size is ready, according to the chip giant. Fab 42 will process wafers at the 14-nm node-and perhaps beyond. This is said to be the world's most advanced fab. Construction of the new fab is expected to begin in the middle of this year and is expected to be completed in 2013.
“The investment positions our manufacturing network for future growth,” said Brian Krzanich, senior vice president and general manager of manufacturing and supply chain at Intel, in a statement. “This fab will begin operations on a process that will allow us to create transistors with a minimum feature size of 14 nanometers.''
The announcement was made by Intel President and CEO Paul Otellini during a visit by President Barack Obama at an Intel facility in Hillsboro, Ore. on Friday. Otellini also said Intel would add4,000 U.S. jobs in 2011. During the visit Friday, Obama also planned to name Otellini to his council on jobs and competitiveness, according to an Associated Press report that cites an anonymous source within the White House.
Otellini recently called for the U.S. government to provide tax concessions for companies that build factories in the United States. At one time, he was also critical of the Obama administration and its policies towards U.S. businesses.
On the other hand, Intel recently obtained a grant from the Israeli government to build a 300-mm fab in that nation. It plans to expand its fab in Ireland. In addition, Intel recently begun operations within its first fab in China. And after some delays, Intel has officially opened its new IC-packaging and test plant in Vietnam.
Artist's rendering of the $5 billion new chip manufacturing facility and support buildings to be built at Intel's site in Chandler, Ariz.
Now, Intel is expanding in the U.S. Friday's announcement represents Intel's second major fab announcement in recent weeks. And it is also in response to fab announcements from Globalfoundries, Samsung, TSMC and others. Globalfoundries, which is expanding its fab efforts, builds processors on a foundry basis for rival Advanced Micro Devices Inc. The foundries are also building ARM-based chips, which compete against those from Intel.
Intel recently reported record sales for the fourth quarter and full year 2010, beating analysts' expectations. The No. 1 chip vendor also said it wouldboost capital spending this year by 73 percent compared with last year.
As part of the capital spending plan,Intel in October confirmed speculation that it will build a new R&D wafer fab in Hillsboro, Ore., and upgrade other existing U.S. facilities for 22-nm production at a total investment of between $6 billion and $8 billion.
The investment will create 800 to 1,000 permanent high-tech jobs and 6,000 to 8,000 construction jobs, Intel (Santa Clara, Calif.) said. The new development fab in Oregon, to be known as D1X, is slated for R&D startup in 2013. The fab will be 450-mm ''ready,'' but it can also process 300-mm wafers.
Then, in December, Intel obtained a grant from the Israeli government to build a 300-mm fab in that nation. Intel will receive a grant from the Investment Promotion Center, according to reports. This will be part of Intel's $2.7 billion investment in Fab 28, a 300-mm plant in Kiryat Gat. Fab 28 is said to be a 22-nm production site.
In January, Intel moved to spend $500 million as it re-commissions Fab 14 at its wafer fab site in Leixlip, Ireland, according to local reports. The move will create 200 long term technical jobs after a two-year build is completed. More importantly the investment looks set to secure the jobs at the three wafer fabs currently active there.
The 300-mm fab will also process wafers at the 22-nm node, according to sources.
It's good to see a profitable company moving forward. Although it's funny, I did not see anyone mention that Intel is basically forced to build advanced FABs in the U.S. because they are restricted due to US export control regulations. Just a few years ago (less than 3yrs ago), no technology smaller than 65nm could be sent outside the US by a US company. Companies based in other countries of course could develop the technology on their own (i.e. Samsung, TSMC, etc.). In some sense, the US govt is at least trying to force the retention of high tech workers within the US.
@Mark is this the fab where 2 rivals (nikon & asml) will support tools for factory or its the one at israel? do you have any information on that? also did us goverment gave some incentive to have factory at Az.?
I have read this news in connection with the announcement of Paul Otellini's plan to add more jobs and spend money. The extra news is that the fab will be for the 14nm node, which will come around 2020 according to ITRS roadmap. We are in 2011, so will the job addition take place in this span of 10 years?
@RobDinsmore, i think you have quite a bad prejudice about Indian that they go after bad jobs [read foreign]. There are enough good opportunities for Indians in India and more are coming, yes my friend. Any do not blame Indians for your laziness, incompetents and "all support and nothing interesting" attitude towards work. No job are bad, only bad (whiners) workers and employees.
Your statement about Intel laying off process engineers at their fab ( Ocotillo ? ) in favor of PhDs imported from India sounds "phoney". To the best of my knowledge there are no semiconductor mfg industry ( beyond 1 um ! ) or related academic programs in India. But Taiwan or So. Korea - for sure.
Or are you perhaps confusing between Software ( for which India is a major supplier of cheap manpower ) and Solid State Physics and engaging in ad hominem attacks ?
What really happens is it is decided the California fab like D2 is not worth upgrading to 300mm due to cost, and a cheaper location is sought like Oregon, Arizona, etc. The workers in the closing factory are given some time to look for jobs internally but only the new fab can accommodate so many at once. If they cannot relocate, they can be given a package.
As far as technology goes, I am not surprised that Intel is leading the way in the advanced technology development. This has been heir history for quite some time. They are becoming a rarity in the industry, with many other companies pushing toward a fabless operational strategy. The impending opening of Globalfoundries and the existing foundries will continue this trend. Intel seems to have the deep pockets and internal talent to be successful with their strategy, so however they accomplish this internally, they have to be applauded for their success to date.