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Intel prepares to start 300-mm wafer production in Q1
At least six 12-inch fabs are in the works, based on company's announced plans







Silicon Strategies


SANTA CLARA, Calif. - Intel Corp. is quietly moving into volume production in its initial 300-mm wafer fab as part of a major plan to reduce the company's manufacturing and chip costs.

Intel will move into production in its first 300-mm fab "this quarter," according to a spokesman for the company. The company's first 300-mm plant, called D1C, is a 0.13-micron development fab located in Hillsboro, Ore.

The D1C plant is a "partial production" fab that has been running wafers since last year. The plant will manufacture microprocessors and other products, according to analysts.

The Santa Clara-based company is making a big push into 300-mm technology, and for good reasons. It is attempting to lower the costs of its Pentium 4 processors in an effort to keep one step ahead of its biggest rival in the PC processor business, Advanced Micro Devices Inc.

Last week, Intel surprised some analysts by lowering its capital spending in 2002 plans by nearly 25% from last year's record $7.3 billion. However, the chip giant believes it can get much more bang for the buck in 300-mm wafer fabs vs. new 200-mm plants (see Jan. 16 story ). During Intel's conference call with financial analysts, company officials said the company would begin producing its first products on 300-mm (12-inch) diameter substrates in Q1.

In total, Intel has announced no less than six 300-mm fabs, which will move into production over the next several years (see May 14, 2001, story).

Following the D1C fab, Intel will begin to ramp up its initial, "high-volume" 300-mm plant, which is based in Rio Rancho, New Mexico. Originally announced about two years ago, the so-called Fab 11x plant in New Mexico is a 300-mm, 0.13-micron plant (see May 24, 2000, story).

The Fab 11x plant is expected to ramp up in the second half of this year, as previously scheduled, said the Intel spokesman. It will make microprocessors and other products, according to analysts, tracking Intel.

Then, in the second half of 2003, Intel is expected to ramp up its third 300-mm fab, this time in Leixlip, Ireland. The so-called Fab 24 plant is supposed to be company's first high-volume fab for the production of chips, based on the 90-nm node (0.09-micron).

Intel's Fab 24 project has been delayed at least twice. Originally, Fab 24 was planned as a 200-mm wafer plant, but last year was changed to the larger wafer size production, while at the same time its opening was pushed back a year, to late 2002.Then, that opening slipped about 12 months to late 2003 (see March 14, 2001, story).

Last week, Intel insisted that Fab 24 is on track despite ongoing construction delays with the $2.2 billion plant (see Jan. 18 story).

Intel also has at least three other 300-mm plants on the drawing board, including a new plant in Chandler, Ariz. The Arizona fab is an 8-inch fab that moved into production last year, but it has also been set up for 300-mm substrates at an undisclosed time in the future.

Last year, the company announced a new 300-mm development fab that will process 0.07-micron chips. Dubbed D1D, the fab will be situated in Hillsboro, near the D1C facility. No timetable was given for the production date of D1D.

And not to be outdone, Intel last year opened a new $250 million R&D fab, which will be dedicated strictly to 300-mm research. The so-called "RP1" plant is also located in Hillsboro.











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