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Intel Corp. has announced that it had decided to delay installation of equipment into its latest Fab 42 facility in Chandler, Arizona. The world’s largest chipmaker decided not to equip the fab to make chips using 14nm process technology, but to leave the building for future manufacturing tools and process technologies. The company will use existing buildings to make 14nm chips.

“The new construction is going to be left vacant for now and it will be targeted at future technologies. The newer fab has not been equipped with the capital equipment. It has heating and air conditioning but the actual tools, the expensive stuff, are not in there,” said Chuck Mulloy, a spokesman for Intel, said in an interview with Reuters news-agency.

Intel initiated building its Fab 42 in 2011 with the intent to create the most advanced, high-volume semiconductor manufacturing facility in the world. The construction of the building was complete in 2013, but the company made the decision not to move-in semiconductor manufacturing equipment into the new fab.

Artist's rendering of the $5 billion Fab 42 chip manufacturing facility and support buildings

Originally, Fab 42 was supposed to produce chips using 14nm process technology on 300mm wafers. In case Intel does not require additional 14nm manufacturing capacity, the fab will be used to make chips at 10nm or even thinner nodes, which require different types of equipment than those used to manufacture processors using 14nm or 22nm fabrication processes.

Initial fabs to produce new-generation microprocessors based on the code-named Broadwell micro-architecture using 14nm process technology will be D1D and D1X module 1 in Hillsboro, Oregon. Besides, Intel is now converting its existing fab 32 to 14nm process technology.

Sales of the world’s largest producer of microprocessors have been growing slower than expected due to soft demand for personal computers (the company’s main revenue source) amid growing shipments of mobile devices like smartphones and tablets. As a result, Intel has to reconsider its manufacturing capacity expansion plans as well as product roadmap.

Tags: Intel, Fab 42, 14nm, 22nm, 10nm, Semiconductor, 300mm

Discussion

Comments currently: 7
Discussion started: 01/15/14 03:14:54 PM
Latest comment: 01/20/14 12:55:19 PM
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[1-4]

1. 
They readed Kaveri reviews, and concluded that underdog will be less dangerous than expected.
2 4 [Posted by: Tristan  | Date: 01/15/14 03:14:54 PM]
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- collapse thread

 
The decision was made months ago. It's just now being divulged publicly.
0 0 [Posted by: AnonymousGuy  | Date: 01/16/14 06:17:25 AM]
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***** Silenced by Fanboyslayer *****
2 1 [Posted by: fanboyslayer  | Date: 01/16/14 06:51:56 AM]
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2. 
All is not lost, Intel could use the empty space to warehouse all of its unsold Quark chips, because the internet of things is already running on the much lower priced ARM ISA based chips, that have been so ubiquitous in the refrigerators, toasters, microwaves, hard disk/SSD drives, and dvd players, etc. over the years! Intel has ignored this market for so long now, choosing to focus, instead, on the High priced, high margin, high performence chip market! The internet of things based chips relies on very low priced, razor thin profit margin commodity CPUs, that the ARM based ecosystem has honed to perfection, these past 30 years, and no amount of clean room bunny suit dancing is going to WOW the makers/OEMs of these cost effective ARM ecosystem based internet of things suppliers.
4 0 [Posted by: BigChiefRunAmok  | Date: 01/15/14 03:36:34 PM]
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- collapse thread

 
All is not lost, Intel could use the empty space to warehouse all of its unsold Quark chips


Thanks Chief............I choked on my tea laughing
1 0 [Posted by: alpha0ne  | Date: 01/18/14 12:08:54 AM]
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3. 
Like their Austin, TX facility, this Intel property could end up just another eye sore as they lose market share to AMD and other competitors.

The good news for AMD is that every reviewer on the planet with any integrity loves Kaveri and has acknowledged it's a significant change in the PC landscape for the better. Now Intel will need to scramble to try and copy HSA and call it some cool name as if they invented it for the x86 environment.
5 1 [Posted by: beenthere  | Date: 01/15/14 04:42:19 PM]
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4. 
I remember when Intel was considering bringing a Fab to Brasil. But our great governants felt it wasn't important and gave no incentives, while they waste dozens of billions giving free manufacturing facilities to automobile giants.

Then China came and took whole world's Fabs, and Brasil's dream of having its own high-tech Fab was gone.
0 0 [Posted by: Hikari  | Date: 01/20/14 12:55:19 PM]
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