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.
Let's give some credit to Intel. It is making an effort to create jobs in the U.S. (and elsewhere.) Intel is also not flexing its muscle on game shows. It is trying to create jobs and keep manufacturing alive in the U.S.
I expected this! There seems to be hesitation for new 300mm fabs since the downturn. Companies rather invest in upgrading and ramping existing fabs. But upgrading tech nodes can not compensate for increasing demand long. Some of the leading edge companies face the questions: invest in new 300mm fab or wait a few years to get into 450mm?
I know a lot of Intel process engineers that were laid off over the last few years in favor of PhD's imported from India. These engineers have either found work elsewhere or are still waiting a call back. I hope this is good news for US-based engineers, but I will wait to see. Creating jobs in the US is one thing, creating jobs and filling them with US engineers is another.
Wow, This is exciting. 14nm technology has arrived. And i guess Intel has deliberately thought to build this fab in US and not anywhere else. This will give some respite to the qualified job seekers who lost their jobs to outsourcing/recession.
Intel is building this fab to be their HVM1 fab for technology developed out of D1X.
As for the jobs and the comment about Indian Ph.D.s. Intel cannot keep good US process engineers in development because most of the jobs are horrible. On call 24/7, all support and nothing interesting, no real opportunity for career advancement, etc. Foreign workers need Intel for the visa sponsorship and tend to stay. Regardless, the only engineers that got laid off were those in 200mm fabs that were closed. More of a consequence of obsolescence rather than the US economy.
@RobDinsmore I don't agree with your point that Indians are not career oriented and they tend to stick with the company just for the sake of getting Visa. Just read this article
And more over US companies are suffering because of the reverse brain drain phenomenon. Read this
@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.
@Rob: "Regardless, the only engineers that got laid off were those in 200mm fabs that were closed. More of a consequence of obsolescence rather than the US economy."
I would hope that the length of an engineering career is not determined by how long a particular technology level is present, assuming the engineers knowledge does no become obsolete. Expertise in 200mm fab should provide the foundation of knowledge required to work in a 300mm fab.
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.
Intel has a notorious "womb to tomb" policy, where engineers are not allowed to jump to next generation opportunities but have to stick with the same generation tools until obsolescence. New generation jobs given to new engineers.
resistion: Let's get the facts straight. The alleged "womb to tomb" policy does not exist. This statement is flat-out incorrect.
phoenixdave: While true that there were systematic layoffs a few years ago (for the first time in decades), I think that the "laid off in favor of engineers imported from India" statement needs to be taken with a rock of salt. Intel is one of the few companies in the industry that does not go through hire/fire exercises with the semi cycle. When a fab closes somewhere and another one opens half-way across the country (or the world) a significant fraction of employees refuse to move even when offered the opportunity. It is undeniable that the work load at Intel is significant (though by no means exploitative), as much as it is a fact that math and engineering are not viewed as a plausible career by many in the US. The distribution of graduates from both undergraduate and graduate programs says as much.
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.
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 ?
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?
@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.?
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.