Paul & Thread - Fab 22, From this morning's "Arizona Republic" (note - Fab 6 is a very old fab, circa 1980. They are still mfg. embeddded processors there):
azcentral.com
Chandler to get Intel chip plant
By Jonathan Sidener
and Chris Fiscus
The Arizona Republic
Jan 26, 2000
Intel Corp. said Tuesday that it will build a $2 billion chip fabrication plant in Chandler, a big endorsement of the future of personal computers and the company's ties to Arizona.
The plant is being designed to use cutting-edge technologies to crank out Intel's fastest personal computer chips when it begins production next year. The move comes in the face of predictions that the PC will be replaced by simpler Internet appliances, mobile computers and Web TV. But PC sales are projected to grow for the next several years.
"Two-thirds of their total revenues are from computers," said Tony Massimini, an analyst with Semico Research in Phoenix. "They're taking care of the cow that's bringing the milk."
Intel is prepared to break ground on the plant after the Chandler City Council votes on the company's application Feb. 10. Chip fabrication plants typically take two years or longer to build, but Intel wants to have this one open next year.
The plant, called a fab in industry jargon, will add 1,000 jobs to the Valley economy in five to eight years, Intel said.
High-tech jobs such as those in the new fab are coveted by economic development officials across the country, primarily because they come with above-average salaries. Intel said the average wage for its Arizona employees, including bonuses, was $56,000 last year. Its total payroll here last year was $882 million.
The new fab, No. 22, will position Intel to re-establish itself as the sole producer of the fastest PC chips and will strengthen its dominance of chip manufacturing.
Last year, Advanced Micro Devices temporarily had the fastest chip on the market. Although having the fastest chip is important for marketing, Intel remains the world's largest chip manufacturer because of its superiority in manufacturing, Massimini said. Intel is developing technology to use 12-inch silicon wafers. The largest wafers used in production today are 8 inches in diameter. The larger wafers produce more than twice as many chips as the 8-inch versions. More chips per wafer means faster production and lower cost per chip.
Massimini said the high-end chips will probably start out in work stations and servers, but quickly end up in home computers. The chips, expected to be more than twice as fast as today's fastest, will end up running more powerful software for the home user, Massimini said.
The plant will open using 8-inch technology and then make the transition into the 12-inch wafers. Two other new technologies - making circuits smaller and replacing aluminum connections with copper - will allow chips to get faster without getting bigger, while using less power.
Analyst Mike Feibus of Scottsdale's Mercury Research said construction of the new fab makes sense in light of projected demand for PC chips. Intel is increasing production in existing plants to meet the high demand for its chips. But that has no bearing on the decision to build the new fab, Feibus said.
"You can't react to shortages," he said. "This is longer term. It's an investment in the future."
The new plant would solidify Chandler as a premier site within Intel. The Santa Clara, Calif.-based company employs about 8,000 people here.
"It's an investment of major proportions," Chandler Mayor Jay Tibshraeny said.
Fab 22 will join two other Intel fabs in Chandler, Fabs 6 and 12. Fab 12 is one of the company's most modern facilities and is producing its top-line Itanium chip. |
