Intel to Invest up to $8B in 22 nm Manufacturing Push

Source: ControlDesign.com

Oct 21, 2010

Chip giant Intel (www.intel.com), headquartered in Santa Clara, California, announced its plans to invest $6 billion to $8 billion on deployment throughout its US fabs of its 22 nm manufacturing process, the next generation after 32 nm technology, which is in production now. The investment will fund construction of its newest development fab in Oregon, as well as upgrades to other fabs in Oregon and Arizona.

"Today's announcement reflects the next tranche of the continued advancement of Moore's Law and a further commitment to invest in the future of Intel and America," said Paul Otellini, Intel's president and CEO, in a statement. Moore's Law drives the pace of development in the semiconductor industry, stated some 45 years ago by Intel co-founder Gordon Moore as the doubling of transistors on a chip approximately every two years.

"Intel makes approximately 10 billion transistors per second," said Brian Krzanich, senior vice president and general manager of Intel's Manufacturing and Supply Chain. "Our factories produce the most advanced computer technology in the world and these investments will create capacity for innovation we haven't yet imagined."

Intel's new development fab in Oregon, dubbed D1X, is expected to begin R&D activities in 2013. The $6 billion to $8 billion in funding will also go toward upgrades at Fab 12 and Fab 32 in Chandler, Arizona; and the D1C and D1D fabs in Hillsboro, Oregon.

Intel generates about three-fourths of its revenues overseas, but three-fourths of its microprocessor manufacturing is still done in the US. The new investment commitment allows the company to maintain its existing manufacturing employment base at these sites.  

The latest round adds to a US investment announced early last year to support manufacturing upgrades that led to Intel's 32 nm technology. The chipmaker's first 22 nm microprocessors, codenamed Ivy Bridge, are expected to be in production in late 2011. The continued technology advancement enables the chip industry's ongoing mantra of smaller, faster, cheaper.

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