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Intel expands its 300mm facilities and prepares for the move to 45nm

Several weeks ago, DailyTech reported thin details about Intel's plan to open a new fabrication facility in China. Intel has not launched a new fabrication facility in a brand new area in 15 years. The new fab marks a major milestone for Intel as it moves forward into developing 65nm products and reaching 45nm later on.

Today Intel officially announced that its newest China facility will be called Fab 68. Located in the northeast region of China in the province of Liaoning, Fab 68 will be a full 300mm wafer facility. Intel also indicated Fab 68 will be its first 300mm in China and expects the investment to yield the possibility of further facilities down the road in the region.

"We welcome Intel and other multinational companies to invest and cooperate with China," said Zhang Xiaoqing, vice chairman of the National Development and Reform Commission.

When Fab 68 is operational, it will be Intel's eighth 300mm wafer manufacturing plant around the world. Intel currently has a number of fabs located in the U.S., Ireland and Israel. Intel stated however that it believes China will play a significant role down a few years from now, both for consumers and manufacturers.  The facility will begin its first production wafers in 2010.

"China is our fastest-growing major market and we believe it's critical that we invest in markets that will provide for future growth to better serve our customers," said CEO Paul Otellini.

At the same time as the erection of Fab 68, Intel announced earlier this year that it would be closing a number of its facilities in Israel that focus on NOR flash memory products. Intel expects it will spend a total of $2.5 billion USD to fully construct and get Fab 68 to its full capacity.

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Intel in top gear...
By spartan014 on 3/26/2007 11:10:37 PM , Rating: 3
Intel is not relenting even for a moment, it seems.. What will be the production capacity of this new fab? And when do they expect it to be up and running?




RE: Intel in top gear...
By slayerized on 3/27/2007 12:25:56 AM , Rating: 2
They expect it to be up and running only by 2010
http://www.eetimes.com/news/latest/showArticle.jht...
This news was up in eetimes a day back, and I do not understand why it has been posted so late in dailytech! This is not the first time a news article has appeared here with such delays. I am an avid reader of dailytech but could not restrain myself from cribbing this time!


RE: Intel in top gear...
By KristopherKubicki (blog) on 3/27/2007 1:01:22 AM , Rating: 3
Our first story on this was from January.

http://www.dailytech.com/article.aspx?newsid=5705

Intel just put out the official greenlight on it today.


RE: Intel in top gear...
By slayerized on 3/27/2007 1:06:40 AM , Rating: 2
Oops! Thanks for the pointer to the prev. article.


RE: Intel in top gear...
By Chillin1248 (blog) on 3/27/2007 4:53:54 AM , Rating: 2
Heh, look at what AMD commented on this, real sweet:

AMD spokesman commented that Intel to build a fab in China is a good thing as it will propel China IT industry development and beneficial to the consumers. It will also boost the overall market competitiveness

-------
Chillin


By KristopherKubicki (blog) on 3/27/2007 3:31:29 PM , Rating: 2
Hmm.. that's an odd thing for them to say. It's not like foundries don't exist in China.


Typical CEO blah blah...............
By crystal clear on 3/27/2007 4:47:39 AM , Rating: 2
Quote-
"China is our fastest-growing major market and we believe it's critical that we invest in markets that will provide for future growth to better serve our customers," said CEO Paul Otellini.

Unquote-

* He should be honest and say INTEL wants to do COST CUTTING
in its manufacturing processes & "THERE IS NO BETTER PLACE THAN CHINA TO DO IT"

* Intel price cuts are NOT ACCEPTABLE to its shareholders.
They talk blunt "YOU WANT TO CUT PRICES TO COMPETE THEN CUT
YOUR MANUFACTURING COSTS & NOT OUR PROFITS"
In short the message is "NOT ON OUR ACCOUNT"

* Even IBM is also moving to CHINA inspite of its huge investment in INDIA.

* China is not only a huge market but also a huge & the CHEAPEST PRODUCTION BASE for all high tech companies.

* I wonder if the U.S. Govt will give them permission to locate the FAB there as it means TRANSFER OF TECHNOLOGY.
May be D.T. can research this point.




RE: Typical CEO blah blah...............
By Sunner on 3/27/2007 5:55:37 AM , Rating: 2
For the last point, that's the reason why it's a 90nm fab instead of 65 or even 45.
Not long ago, they wouldn't have been allowed to open anything more modern than a 180nm fab.


By KristopherKubicki (blog) on 3/27/2007 7:45:24 PM , Rating: 2
Sunner is absolutely correct. It just a few weeks ago that Taiwan let TSMC start production on smaller nodes in China -- the U.S. gov is the same way.


RE: Typical CEO blah blah...............
By oTAL (blog) on 3/27/2007 6:02:51 AM , Rating: 2
It's a chipset manufacturing plant. That may make some difference...


By crystal clear on 3/27/2007 8:16:53 AM , Rating: 2
There is no standard procedure or policy on technology transfers to China by the Commerce dept & the Defense dept.
As far as I know every case is considered on its merits.
Maybe somebody from DT commentators who deals in such issues
can put in some more information on this.


By crystal clear on 3/27/2007 8:47:19 AM , Rating: 2
Intel To Build 300mm Wafer Fabrication Facility In China
Fab 68 in Dalian is $2.5 Billion

Investmenthttp://www.intel.com/pressroom/archive/releases/20...


By Phynaz on 3/27/2007 12:37:26 PM , Rating: 2
"* He should be honest and say INTEL wants to do COST CUTTING in its manufacturing processes & "THERE IS NO BETTER PLACE THAN CHINA TO DO IT""

He did. He specifically said that this plant is costing $1B less than if it was built in the US.

"* I wonder if the U.S. Govt will give them permission to locate the FAB there as it means TRANSFER OF TECHNOLOGY."

Yes, they have permission for this to be 90nm. Current laws limit exported technology to 180nm. Do you really thinka company would make a $2.5B commitment just to say "oops, we didn't check the export laws"?


This will all eventually end badly
By FITCamaro on 3/27/2007 9:01:14 AM , Rating: 1
Personally, if I was the CEO of a large corporation, the last thing I would want to do is put my manufacturing in China. Let's see. The country is run by a communist party that has no interest in pleasing anyone but themselves. At any time they could easily seize every building in their country and there's nothing companies could do about it. And I doubt that even the US would risk war with China to get the facilities back.

Personally I think the next world war is going to be China and its friends vs. the western world. They're going to want more resources eventually and with a billion plus people, they have the bodies to throw into a war and likely win. And since Europe will do nothing until its all but conquered, that'll leave the US and Russia to fight them off. Would be pretty familiar....




By slayerized on 3/27/2007 10:29:09 AM , Rating: 2
This is some serious thinking you have done on this issue, and probably not realistic. The plant is a 90nm facility; in essence the remains from some of Intel's facility in OR/NM/AZ is going to be thrown into the production line over there. About the risk of China seizing every building in the country- I do not think that is going to happen in the near future. China for one has way few allies to challenge the western world to war and everyone knows such a war would result in nothing but a global catastrophe. So Intel is targeting cheap production for a bunch of their cheap chipsets, while maintaining a presence in a massively emerging market. I do not see how this would eventually end badly!

Cheers


By 91TTZ on 3/27/2007 1:20:11 PM , Rating: 2
With multinational trade nowadays, you're only shooting yourself in the foot by attacking your trading partner.

China and its friends going to war with the West? Not a chance. They'd be attacking their largest and second largest trading partners. Normally you go to war for some kind of financial gain.

Also, Japan has historically been enemies with China. What side do you think they would take? The US is Japan's largest trading partner.

The EU is China's #1 trade partner.
The US is China's #2 trade partner.
Japan is China's #2 trade partner.

A war wouldn't really be beneficial in this case.


RE: This will all eventually end badly
By Roy2001 on 3/27/2007 1:41:33 PM , Rating: 2
I seriously suspect that you just came back from 60's through a time machine. :D


By JackPack on 3/27/2007 6:38:50 PM , Rating: 2
I think he's been reading 1930s comic books or something. I really don't know how people like FITCamaro come up with such uneducated responses.

Yeah, I'm sure China worked up their economy for decades, holding more than $1 trillion in foreign reserves, just so they could seize some property. How could you trust the Chinese yuan? Maybe they'll go to a bartering system tomorrow! Next thing you know, the Department of the Treasury will declare all treasury securities null and void! The United States is now debt free!


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