Intel To Build 2nd 45nm Wafer Fab

Intel announced plans to build a new 300-mm wafer fabrication facility at its
site in Kiryat Gat, Israel. The new factory, designated Fab 28, will extend
Intel’s manufacturing leadership by producing leading-edge microprocessors in
the second half of 2008 on 45 nanometer (nm) process technology. Construction on
the $ 3.5 billion project, Intel’s second 45nm factory, is set to begin
immediately.

“Intel is committed to widening its lead in advanced semiconductor
manufacturing,” said Paul Otellini, Intel president and CEO. “Our manufacturing
network is a strategic asset of unmatched scope and scale that gives Intel the
ability to provide customers with leading-edge products in high volume. Today’s
announcement of a second 45nm high volume factory reaffirms that Intel platforms
will contain the most advanced and innovative technology in the world for years
to come.”

Intel Corporation today announced plans to build a new 300-millimeter (mm)
wafer fabrication facility at its site in Kiryat Gat, Israel. The new factory,
designated Fab 28, will extend Intel’s manufacturing leadership by producing
leading-edge microprocessors in the second half of 2008 on 45 nanometer (nm)
process technology. Construction on the $ 3.5 billion project, Intel’s second
45nm factory, is set to begin immediately.

“Intel is committed to widening its lead in advanced semiconductor
manufacturing,” said Paul Otellini, Intel president and CEO. “Our manufacturing
network is a strategic asset of unmatched scope and scale that gives Intel the
ability to provide customers with leading-edge products in high volume. Today’s
announcement of a second 45nm high volume factory reaffirms that Intel platforms
will contain the most advanced and innovative technology in the world for years
to come.”

When completed, Fab 28 will become Intel’s seventh 300mm wafer facility. The
structure will include approximately 200,000 square feet of clean room space.
Over the next several years the project will create more than 2,000 Intel jobs
at the site. The Israeli government is providing financial incentives for the
new facility.

Intel currently operates five 300mm fabs that provide the equivalent
manufacturing capacity of about eight older generation 200mm factories. Those
factories are located in Oregon, Arizona and New Mexico in addition to Ireland
where an expansion of Intel’s 300mm capacity in Ireland (Fab 24-2) is scheduled
to begin operations in the first quarter of next year. In July Intel announced
plans to invest more than $ 3 billion to build another 300mm fab, Fab 32 in
Chandler, Ariz.

Manufacturing with 300mm wafers (about 12 inches in diameter) dramatically
increases the ability to produce semiconductors at a lower cost compared with
more commonly used 200mm (eight-inch) wafers. The bigger wafers lower production
cost per chip while diminishing overall use of resources. Using 300mm
manufacturing technology consumes 40 percent less energy and water per chip than
a 200mm wafer factory. Intel’s 45nm technology, which will first be put in high
volume production at Fab 32, will allow chip circuitry to be built at about half
the size of today’s standard 90nm technology.

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