RIO RANCHO, N.M., Feb. 26, 2007 — Intel Corporation today announced that it will invest $1 billion to $1.5 billion in its Rio Rancho site to retool Fab 11X for production on Intel’s next generation 45 nanometer (nm) manufacturing process. Fab 11X will be the company’s fourth factory scheduled to use the 45nm process, with production in New Mexico scheduled to start in the second half of next year.

Marking one of the biggest advancements in fundamental transistor design in 40 years, Intel’s 45nm high-k and metal gate process consists of an innovative combination of new transistor materials that drastically reduces transistor leakage and increases performance. When 45nm production begins later this year, the company will use a new material with a higher-k (dielectric constant), and a new combination of metal materials for the transistor gate electrode. Extending its lead over the rest of the semiconductor industry, early versions of Intel’s next generation 45nm family of products – codenamed Penryn – are already running multiple operating systems and applications, and the company remains on track to begin 45nm production in the second half of this year.