Intel invests $2.7 billion to update Israeli fab for 22nm chips

CHIPMAKER Intel will invest heavily in its Israeli chip plant in order to produce 22nm chips.

Last week, Intel's CEO Paul Otellini revealed that Intel had finished development of its 22nm process and was in the midst of "ramping up the yield of the 22nm chips".

After Chipzilla invests $2.7 billion into its Kiryat Gat plant, that will be Intel's second fab that can produce chips using the 22nm process.

Maxine Fassberg, general manager of Intel Israel told journalists that the firm was already getting ready to hire people and that "we are scheduled to start production in December." That just about fits in with Otellini's statement that Intel will be mass producing 22nm chips in the second half of 2011.

With Intel's Sandy Bridge chips getting the 22nm treatment, morphing them into Ivy Bridge chips by the end of the year, this should mean widespread availability of Ivy Bridge chips very near Christmas or early in 2012.

While Intel is investing in retooling its existing fab in Israel, Fassberg added that Chipzilla has no plans to build another plant in Israel at this time. µ