The project is slated to begin on the 4500 S. Dobson Rd. facility by midyear 2004. Production should start on the 65-nanometer process technology by late 2005. Intel also has a second facility at the same site in Chandler, Fab 22, which opened in 2001.

"This technology greatly improves our capital efficiency by giving us more than twice the capacity at significantly lower costs," Bob Baker, senior vice president and general manger of Intel Technology and Manufacturing Group, said in a press release. "Additionally, by reusing an existing 200-mm factory we save additional capital and take advantage of the highly skilled workforce we already have in place." He added production of the new 300-mm wafers will give Intel the ability to deliver greater computing power and functionality at a lower cost to its customers.

Built in 1996, the converted 900,000-sf Fab 12 plant will be Intel's fifth 300-mm wafer facility. The world's largest chip maker currently has two 300-mm Fabs in Hillsboro, OR and Rio Rancho, NM, which opened last year. Two other 300-mm facilities are under construction in Oregon and Ireland. The Oregon facility will begin operations later this year. The Ireland plant is scheduled to begin operating in the first half of 2004.