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During a meeting with analysts on Thursday, Intel Corp.’s executives confirmed that the company is deploying 65nm second generation strained silicon process technology according to initial plans and said commercial shipments of products made using 65nm and 90nm technology would crossover in about a year from now.

Robert J. Baker, Intel’s senior vice president and general manager of the Technology and Manufacturing Group, said four of Intel’s fabs, particularly D1D, D1C in Oregon, 12C in Arizona and 24E in Ireland will make chips using 65nm process technology. He projected that the crossover in shipments of products manufactured utilizing the company’s 90nm and 65nm technologies will happen in the third quarter of 2006.

The first commercial products made at 65nm fabrication process will leave Intel’s fabs already in 2005. While he declined elaborate on the actual microprocessors, it is known and confirmed that Intel has at least five central processing units scheduled for launch in early 2006: Cedar Mill, a desktop single-core processor; Dempsey, a server dual-core microprocessor; Presler, a desktop dual-core chip; Yonah single-core and dual-core notebook-oriented products.

Shipments crossover between 65nm and 90nm products in Q3 2006 generally reaffirm the company’s plan to ramp up dual-core chips across the markets next year.

Currently 65nm process technology’s yield is not as mature as that of 90nm fabrication technology, according to the company’s presentation, but Intel is optimistic and claims that in the second half of the year, when the company starts volume production using the process technology, the yield will be at the “world class” level.

Intel is expected to use fabs that make chips using 90nm process technology to make chipsets and other components that do not require thinner manufacturing processes after it transits processors to 65nm product lines.

The chief of the Technology and Manufacturing Group at Intel indicated that Intel’s 45nm process technology is in development today and requires “moderate investment” right now. The firm’s 32nm process technology is in the “path finding” stage and Intel is evaluating different options by working together with consortia, universities and various labs. Intel’s CFO Andy Bryant indicated that it costs from $500 million to $1 billion to develop a fabrication process nowadays.

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