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News Article

Intel quietly opens Irish 65nm fab

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Intel opened the 65nm Leixlip fab this week to little international fanfare. The event marks Intel's third chip factory using 65nm process technology. The US$2 billion factory has begun high-volume production using 65nm process technology produced on 300mm wafers. Along with Intel's Fab 12 in Arizona and D1D fab in Oregon, the new facility (called Fab 24-2) marks the third venture for the chip maker into 65nm facilities.;

IDA Ireland, the government development agency, was forced to withdraw an offer of EUR170 million in state funding for the new wafer fabrication facility last year after the EU signalled it would not allow further local funding. Intel proceeded with its plans to open the facility, but warned that it would reconsider potential investments in the Irish region.

Speaking at the opening of the factory, Taoiseach Bertie Ahern said that he welcomed Intel's decision to locate its new facility in Leixlip. "Today's event is a continuation of the success story for Intel Ireland which is the largest Intel operation outside the US, employing almost 5,000 people," said Ahern.  

Intel is expected to release its new microarchitecture shortly and the presentations at the opening and subsequent press releases reveals part of the marketing strategy is designed to announce the company's intention of claiming back market share from rival AMD. Despite clearly being the largest manufacturer and investor of microprocessors, the company has seen AMD move ahead in the high end server market as well as a few niche areas. There was much effort in describing Europe's first full 65nm facility and products shipped ahead of the crowd. The enthusiasm in this message unfortunately only highlighted that the company has been worried by AMD's advances. Industry observers have known Intel has the largesse to fight back and the presentation of this announcement suggests Intel intends to tackle the competition head on. 

"Intel is establishing a clear technology lead with our next generation of dual-core processors based on the Intel Core microarchitecture," said Intel President and CEO Paul Otellini. "Our manufacturing capability is key to fueling Intel's success." 

Intel has achieved an important manufacturing milestone with its three 65nm factories. Known as manufacturing "cross-over," it means that Intel is currently producing more than half its PC and server microprocessors using this process technology. During a ceremony to officially open the Ireland factory, Otellini said that the 300mm wafers that began running through the new facility three months ago helped the company reach this milestone.

"Intel's ability to ramp advanced 65nm silicon technology into high-volume production in three factories clearly sets us apart," said Otellini. "The combination of 65nm technology and Intel's new Core microarchitecture changes the game in terms of the benefits we can provide our customers."

During the summer Intel will introduce Intel Core2 Duo processors for desktop and notebooks the Dual-Core Intel Xeon processor 5100 series. Intel also claimed it is on track to begin production using 45nm process technology by the end of 2007.   

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