Intel has announced a $2.7 billion investment in a chip manufacturing facility at Kiryat Gat, Israel, to upgrade it to 22-nm manufacturing.
According to Reuters, the plant will begin production in December, and will be Intel's second to be migrated to the 22-nm chips. It will not be a new facility.
In October, Intel said would invest up to $8 billion in 22-nm manufacturing. The investment will be used to develop and fabricate Intel's first 22-nm processors, known as "Ivy Bridge," in 2011. The Ivy Bridge design will be what's known as a process shrink - an existing design manufactured on a finer manufacturing process, with a corresponding cut in power or increase in clock speed - of the upcoming "Sandy Bridge" chip, which was introduced at this year's Intel Developer Forum.
The manufacturing shift will be a key one for Intel, as it not only maintains its process lead over its competitors but also applies it to entering new markets. In reporting stellar fourth-quarter results, Intel said that it was moving to a "four-fab" strategy, where it would invest in four-leading edge fabs, rather than take a more conservative approach. Those leading-edge 22-nm fabs will also be used to fabricate Atom processors, in a bid to take on ARM.