News 

Sited at Kiryat Gat, Israel, the $3.5 billion project is expected to generate 2,000 jobs and be completed in the second half of 2008.

'Our manufacturing network is a strategic asset of unmatched scope and scale that gives Intel the ability to provide customers with leading-edge products in high volume,' said Intel president and CEO, Paul Otellini. 'Today's announcement of a second 45nm high volume factory reaffirms that Intel platforms will contain the most advanced and innovative technology in the world for years to come.'

As well as Israel, Intel has 300mm fabs in Oregon, Arizona, New Mexico and Ireland, where an expansion of capacity is also scheduled to begin in the first quarter of 2006.

The advantage of larger wafers is that they can be used to produce more chips more cheaply, with Intel stating that 300mm manufacturing technology consumes 40 per cent less energy and water per chip than a 200mm wafer factory.

The 45nm technology will allow chip circuitry to be built at about half the size of today's standard 90nm technology.

Otellini is pictured holding one of the first Intel-produced 300mm wafers, at the IDF Fall 2003.