Intel invests billions in 45nm manufacturing process

Hot on the heels of announcing that the first chips produced using a 45nm process will soon hit the streets, Intel has unveiled a plan to expand its ability to produce chips using the advanced process. The company will spend between $1 and $1.5 billion in order to upgrade an existing 90nm fabrication plant in Rio Rancho, New Mexico to the 45nm process. According to Intel, the plant will start rolling out chips during the second half of this year. Intel already runs three 45nm plants--in Oregon, Arizona and Israel, some of which cost as much as $3.5 billion to construct--and it's quite clear that the company is ramping up its production capabilities in order to meet the demand for forthcoming 45nm Xeon parts. Meanwhile, rival AMD has yet to reveal its 45nm plans, though the company has stated that it will partner with IBM for the fabrication process.

For more on Intel's 45nm designs:
- see this Ars Technica article