Intel this week revealed the first details concerning its fab expansion plans in Oregon. As it turns out, the company intends to build the third phase of its D1X fab, and that the latest expansion (mod) will be similar in size to each of the first two phases of D1X. Intel plans to start construction later in 2019, so the new fab will be ready in the coming years.

As a part of its preparations to begin construction, Intel had to notify local residents about its intentions. On Monday the company contacted 50 residents living near its Ronler Acres campus about its intention to build a third phase of its D1X manufacturing facility. Just like the previous two buildings, the new fab will be approximately 1.1 million square feet (~102 thousand square meters) in size, according to a media report, but Intel yet has to disclose its official numbers. In addition to the factory, the company will have to build a new technology building with emergency generators, and utilities.

The processor giant has to disclose many more details about its D1X Phase 3 fab, including actual production capacity as well as process technology that it will use. Two of Intel’s fabs — in Israel and Oregon — are ready to produce CPUs and other products using the company’s 10 nm fabrication process, but it remains to be seen how much additional 10 nm capacity the company will need.

Intel announced plans to expand its production facilities in Oregon, Ireland, and Israel, in late 2018. A year before, it said it would furnish its Fab 42 in Arizona in a bid to build chips using its 7 nm process technology that relies on DUV and EUV lithography tools. Back in January 2019 it was also revealed that Intel also intends to build another massive fab in Israel.

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Sources: OregonLive.com, Intel

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  • edzieba - Wednesday, February 6, 2019 - link

    Because they did not expect such high demand for parts.

    "Because 10nm was late" doesn't hold water, Intel are not taking active 14nm lines out of action to set up 10nm lines that do nothing. Neither is the move of PCHs to 14nm, other than in the short term: those 22nm lines were offlined to set up more 14nm lines.

    The more boring explanation is that Intel expected enterprise, HPC and datacentre demand to decline, so lined up the Apple MODEM contract to fill capacity. Then Enteprise, HPC and datacentre demand instead grew, and Intel found themselves holding a high-volume-low-margin contract they could not renege on (Apple are infamously vindictive to suppliers that fail to kowtow) and not enough capacity to satisfy everyone. Thus, MODEMs got top billing, followed by parts by margin: HPC and datacentre, then enterprise (the shortage of business laptops is starting to relax) and then consumer parts right at the bottom mostly as an afterthought with the lowest margins and smallest market segment.
    Reply
  • eva02langley - Wednesday, February 6, 2019 - link

    ""Because 10nm was late" doesn't hold water, "

    Are you blind for not seeing the big picture? Their 14nm shortage is due to Intel inability to transit to 10nm and transit share of production on their 10nm fabs.

    It is going to be the same thing in 1-2 years when they tried to switch their production to 7nm, however this time, they will need to balance their 7nm, 10nm and 14nm workload. It is going to be even worst if 10nm is still unable to provide at least half of the current 14nm production.

    It is a huge mess, and the worst is that the industry bypassed, and probably for good this time. There is no going back. Intel should really review their business model because competing against TSMC or Samsung is a lost cause profitably.
    Reply
  • edzieba - Wednesday, February 6, 2019 - link

    "Their 14nm shortage is due to Intel inability to transit to 10nm and transit share of production on their 10nm fabs."

    /What/ 10nm fabs? They have development lines set up, but they haven't just rolled over a bunch of 14nm lines just to leave them sat idle.
    Reply
  • Sahrin - Wednesday, February 6, 2019 - link

    I think what’s happened is that Intel and BK specifically believed that they could perpetually achieve the same yields as process tech improved. But what they’ve found is, they can’t.

    Combined with the need to build much larger chips to compete with AMD, the massive expansion indicates Intel is doubling down on an already stupid strategy. Good news for AMD.
    Reply
  • eva02langley - Wednesday, February 6, 2019 - link

    They are going to wake up. They cannot keep their head underneath the sand anymore. If they do, they will lose market share year after year due to production issue and competition resurgence. I believe Intel will do too little too late this time and lose their pseudo-monopoly for good.

    It took AMD almost 30 years, but they might succeed this time.
    Reply
  • StrangerGuy - Thursday, February 7, 2019 - link

    Thanks to AMD, all of us gamers can now get a 2600 non-X and a B450 board for $220 and still do just as well as an i9 platform 99% of the time at 1/2 to 1/3 of the cost. This is not even counting Zen 2 on the near horizon. Reply
  • Rudde - Thursday, February 7, 2019 - link

    They are probably betting on a swift move to 7nm EUV. Some articles claim 7nm will be ready in 2021. Reply
  • twtech - Wednesday, February 13, 2019 - link

    I think that's the real reason Intel fired him. I wouldn't be surprised if the long-defunct personal relationship provided as the reason was in fact actually known about for some time, but when they wanted to make a change, they brought it out an excuse to remove him without having to admit there was anything functionally wrong with the way they were doing things.

    Additionally, when I heard about the sorts of things Intel was focusing on from a personnel standpoint over roughly the past decade, it's not that surprising that they may have started having issues in the type of business where constant innovation is required to stay competitive.
    Reply
  • IGTrading - Wednesday, February 6, 2019 - link

    Funny thing that Intel gets HUGE TAX CUTS from USA and decides to invest 13 billion USD in Israel and less than 1 billion in USA ;)

    American workers rejoice!

    Israel on the other hand, played a very , very good hand. The true Silicon Valley of the Middle East.
    Reply
  • Rudde - Thursday, February 7, 2019 - link

    <$1bn? What is your source?
    The original source (the Oregonian) writes:
    "Christian Dieseldorff, principal analyst for the industry trade group SEMI, said a fab of the size Intel is seeking would cost between $4 billion and $5 billion. "
    Let's not forget that Intel is also building a new fab in Chandler, Arizona. That fab easily runs in excess of $6 billion.
    The Israel deal is $11bn, of which Intel pays $10bn.
    Intel is investing more in the US than Isreal!
    Reply

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