Feb. 19, 2003 – Santa Clara, CA – Intel Corp. plans to convert Fab 12, a 200mm wafer fabrication facility located in Chandler, AZ, to a 300mm wafer fab. The conversion project, estimated to cost $2 billion, will begin in 1H04 with production scheduled to begin in late 2005. The converted fab will start up production on 65nm process technology.

“This investment is consistent with our belief that Moore’s Law is alive and well,” said Bob Baker, senior VP and GM of Intel’s technology and manufacturing group. “300mm production, combined with leading-edge manufacturing, gives us the ability to deliver our customers greater computing power and functionality at lower costs.

“This technology greatly improves our capital efficiency by giving us more than twice the capacity at lower costs. Additionally, by reusing an existing 200mm factory we save additional capital and take advantage of the highly skilled work force we already have in place.”

When completed, the converted Fab 12 will become Intel’s fifth 300mm wafer facility. Intel currently has two 300mm fabs in operation, one in Hillsboro, OR, the second in Rio Rancho, NM. Two other 300mm facilities are under construction. One in Oregon will begin operations later this year, and a facility currently under construction in Ireland is scheduled to begin operations in 1H04.

Separately, the company disclosed plans to sell 524 acres of land in Forth Worth, TX. The land was purchased in 1997 as part of a planned manufacturing facility. However, changes in manufacturing technology and current construction projects at existing Intel sites mean the property is no longer part of the company’s future plans.