July 26, 2005 — Intel Corp., Santa Clara, CA, has announced plans to build a new 300mm wafer fabrication facility at its site in Chandler, AZ. The new factory, designated Fab 32, will begin leading-edge microprocessor production in 2H07 on 45nm process technology. The company says construction on the $3 billion project is to begin immediately.

“This investment positions our manufacturing network for future growth to support our platform initiatives and will give us additional supply flexibility across a range of products,” said Paul Otellini, Intel CEO.

Fab 32 will become Intel’s sixth 300mm wafer facility, with ~1 million sq. ft of space, and creating up to 1000 new Intel jobs at the Arizona site over the next several years. Intel four currently operating 300mm fabs reportedly generate the equivalent capacity of about eight 200mm factories. An additional 300mm fab is already under construction in Arizona (Fab 12), with operations to commence later this year, and one expansion in Ireland (Fab 24-2) should begin operations in 1Q06.

Separately, Intel also intends to invest $105 million dollars on converting an inactive wafer fab in New Mexico to a component temporary test facility, which would provide additional test capacity to the company’s factory network for the next two years and would result in another 300 jobs at the site during that period.