The Channel logo

News

By | Tony Smith 16th September 2005 13:49

Intel invests in 200mm-wafer fab capacity

$345m destined for two US plants

Intel will pump $345m into two US fabs in a bid to boost production capacity, the chip giant said yesterday.

The two fabs targeted for investment, Fab 17 in Hudson, Massachusetts and Fab 23 in Colorado Springs, Colorado, both work with 200mm wafers.

As such, they're used primarily to punch out chipsets, communications parts and Flash memory components. While Fab 17 will get $155m to increase overall production capacity, Fab 23's cut, $190m, will be used to kit out a second clean room which will be used to finish off processors made on 300mm wafers at other Intel facilities.

Both projects will create around 500 new jobs in total: 300 at Hudson and "several hundred" at Colorado Springs.

"These investments will increase the capacity of our 200mm manufacturing network to support our platform initiatives and will give us additional supply flexibility across a range of products," said Bob Baker, senior vice president, general manager, Technology and Manufacturing Group.

Earlier this month, Intel admitted it had "sold out" of notebook chipsets. In August, it said it was shifting output away from entry-level desktop chipsets in order to focus available capacity on higher-end, higher-margin chipsets, causing some observers to claim Intel plans to quit the low-end chipset business - a move the manufacturer later denied. ®

alert Send corrections

Opinion

Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world