Intel today unveiled plans to convert its existing 90nm chip factory near Albuquerque, New Mexico into a 45nm facility. Construction on the $1bn to $1.5bn project is scheduled to start late 2008.

The move hardly comes as a surprise: Intel has always had four semiconductor fabs ready within one year after switching chip manufacturing technologies. The New Mexico plant simply provides the last piece of the puzzle.

27 Feb 2007

The good news for consumers is that AMD also is preparing to have two 45nm fabs ready by 2008, and will rely on Charter Semiconductor to provide additional production capacity.

Users, in other words, can expect a flood of 45nm processors to hit the market in the coming years, causing prices to come down at an unprecedented level.

Quad core processors for everyone! And go short on your Intel and AMD stock.

Intel chief executive Paul Otellini with an image of Intel's first 45nm "Penryn" chip in the back