Intel has said that it plans to invest $650 million in its existing manufacturing site in New Mexico. The result should be the ability to increase the capacity of the 300 mm wafer fabrication facilities in Rio Rancho. Construction and new tool installations are expected to continue through 2006, and the production operations are expected to begin through the new expansion in early 2007.

"Today's announcement signals another important addition to one of Intel's pre-eminent U.S. manufacturing sites and better positions us to meet customer requirements," said Intel President and CEO Paul Otellini. "Additional 300 mm wafer manufacturing capability helps improve the overall cost-effectiveness of our worldwide manufacturing network. Investing in an existing manufacturing site allows us to take advantage of our highly skilled workforce in New Mexico."