Chip giants invest in new FABs

Intel expands in New Mexico, and AMD moves into China's Silicon Valley

Intel and AMD are planning major investments in chip production plants in the US and China.

Intel is to spend $650m expanding its current facilities in New Mexico that produce its 300mm chip wafers. Intel president Paul Otellini explained that this would make FAB 11x one of the firm's most important chip production centres.

"Additional 300mm wafer manufacturing capability helps improve the overall cost-effectiveness of our worldwide manufacturing network," he said.

The 300mm wafer process allows many more 90nm and 65nm chips to be produced from a single sheet of silicon, bringing costs down and speeding up production.

Similar 300mm FABs in Ireland and Oregon will not be receiving additional investment.

Meanwhile AMD has been speeding up its moves to take advantage of Chinese production facilities by licensing x86 and Geode processor technology for local manufacture.

The company also formally opened its new Greater China Headquarters at Zhongguancun Science Park, the province frequently referred to as China's Silicon Valley.

AMD president Hector Ruiz said that the new facility will put AMD "at the heart of China's booming technology industry and close to partners and customers ".

AMD also announced a three-year $750,000 investment programme to bring more IT to primary schools in remote areas of China.