Fab news from Intel

has announced it will invest up to $1.5bn in its Rio Rancho site to retool Fab 11X for production on Intel's next generation 45 nanometre (nm) manufacturing process.

Fab 11X will be the company's fourth factory to use the 45nm process, with production in New Mexico scheduled to start in the second half of next year.

Marking one of the biggest advancements in fundamental transistor design in 40 years, Intel's 45nm high-k and metal gate process consists of a combination of new transistor materials that reduce transistor leakage and increase performance. When 45nm production begins later this year, the company will use a new material with a higher-k (dielectric constant), and a new combination of metal materials for the transistor gate electrode.

Initial production of Intel's 45nm products will be done at its Oregon development fab, D1D. The company is currently building two other factories that will use the 45nm process. The $3bn Fab 32 in Chandler, Arizona, will commence production late this year; and the $3.5bn Fab 28 in Kiryat Gat, Israel, will begin production the first half of next year.

Fab 11X currently manufactures 90nm computer chips on 300mm wafers. Fab 11X began production in October 2002 and was Intel's first 300mm, or 12 inch, high-volume manufacturing facility. It was also Intel's first fully automated, high volume factory producing 300mm wafers.