NEW YORK: Chip maker Intel Corp. said it is investing $1 billion to modernize its New Mexico plant making it capable of producing next generation 45-nanometer chips.
The Rio Rancho, New Mexico-based fab will be the company's fourth fab to adopt this process. 45-nm chips are known for their energy conservation and competitive pricing, mainly because they use less amount of silicon.
Including this outlay, Intel has earmarked around $8 billion to upgrade its plants to be capable of producing chips on the 45-nm standard.
The company targets to start production of its 45-nm chips from its Oregon plant in 2007, while work on the New Mexico plant will begin by the second half of 2008.
Intel is already upgrading its Chandler, Arizona fab in order to take up production of 45-nm chips there. It is spending nearly $3 billion on this account. An amount of $3.5 billion is earmarked for upgrading the Kiryat Gat, Israel plant too. All these four plants will make a new family of chips, which the company has codenamed Penryn.
Intel currently makes its chips using 65-nm process technology. Its smaller rival, Advanced Micro Devices too has switched to 65-nm technology in December 2006 and it planning to upgrade its plants to 45-nm production in 2008.
