Intel To Expand Chip-Making Capacity, Restart Ireland Project

Intel Corp. announced Thursday it is expanding its chip-making capacity and will restart construction on a $2 billion factory in Ireland that was halted during the economic downturn.

The new factory will produce next-generation microprocessors on silicon wafers slightly larger and cost efficient.

"As computing and communications devices converge, the need for higher-performance components will grow," said Bob Baker, vice president and general manager of Intel's Technology Manufacturing Group. "This facility will help us meet that growing demand."

The factory, when completed in the first half of 2004, will contain 160,000 square feet of cleanroom, where the chips are created. It is expected to employ about 1,000 people.

Construction of the facility in Leixlip--the largest single construction project in Ireland--was started in June 2000 but halted last year as the worldwide technology downturn worsened.

Intel currently employs 3,150 people in Leixlip, and the company says its total investment in manufacturing facilities in Ireland at the end of 2004 will total more than $5 billion.

The announcement was made during the chip maker's analyst meeting in San Jose.

The company also unveiled the brand name for its second-generation Itanium microprocessor, which is designed for high-powered servers and workstations. The chip code-named McKinley will be sold as "Itanium 2."

Shares of Intel rose 18 cents to $29.09 in Thursday trading on the Nasdaq Stock Market.

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