INDUSTRY NEWS

Europe

Intel delays Irish fab

Intel has postponed the opening of a $2-billion fab at its site in Leixlip, Ireland, until the second half of 2002. The chipmaker had planned to begin production at the Fab 24 plant this year. Originally announced as a 200-mm fab last June, the facility will be built to process 300-mm wafers instead, Intel says. The delay will give the company time to develop the site for production of the larger-sized wafers.

Some news reports indicated that the world's largest chipmaker decided to postpone the opening because of a dip in microprocessor sales and lukewarm fourth-quarter revenues in 2000. However, Maria Marced, Intel's vice president and managing director for Europe, denied that business concerns prompted the postponement. Speaking to The Sunday Business Post in Ireland, Marced expressed surprise "at reports that market conditions are delaying the investment." Intel selected the site near Dublin as its first factory to shift to 300-mm production and postponed the launch "to take advantage of the new technology," Marced told the newspaper.

Ireland's Industrial Development Agency has offered Intel a grant-aid of approximately $200 million for the expansion. The completed fab will measure 132,000 sq ft. More than 6000 workers will be employed at the Leixlip site, making the high-volume factory one of Intel's largest worldwide operations. That total includes 1000 employees who will be hired over a four-year period, according to the news report. The Irish fab will be Intel's second 300-mm production factory. The company is building its first 300-mm production fab in Rio Rancho, NM.

German foundry launched

A new German foundry specializing in communications microchips has been launched with the backing of Intel. Communicant Semiconductor Technologies will build a $1.5-billion fab in Frankfurt, 50 miles east of Berlin in the former East Germany. Another key investor is Innovations for High Performance (IHP), an R&D center in Frankfurt. IHP is providing proprietary silicon-germanium-carbon technology. Combined with 0.18-µm CMOS processes offered by Intel, the IHP technology would enable Communicant to make chips for the wireless, broadband, and high-performance markets, the startup says. Communicant will begin production in the first quarter of 2003. Operating at full capacity, the plant will produce 30,000 200-mm wafers per month. Prototyping services will become available by the third quarter of 2001. Communicant says the modular nature of the BiCMOS processes it will utilize at the plant will enable the foundry to reuse existing digital designs. This advantage furthers the trend to single chips that combine both communication and computing capabilities, according to the company.

Intel has taken a 25% stake in the foundry and will have rights to 20% of the plant's output. The chipmaker will also receive royalties for the technology license. The government of Dubai, one of seven sheikhdoms in the United Arab Emirates, also may invest in the startup.

Middle East

Israel funds Intel fab

Israel has agreed to partially subsidize an Intel fab to the tune of approximately $440 million. If it decides to proceed, Intel will use the funds to expand its operations in the southern Israel town of Kiryat Gat. The government monies would account for approximately 12.5% of the $3.5-billion expansion costs. The Kiryat Gat plant produces devices with 0.18–µm geometries. An expanded fab would make 0.13-µm chips. Israel signed the agreement February 5, and Intel has three months from that date to submit a formal proposal for the investment to the Industry and Trade Ministry.

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