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A significant proportion of Intel Corporation’s 2009 capital expenditure plans will be targeted at re-tooling 300mm fabs in Arizona, New Mexico and Oregon to its 32nm process technology, which is expected to ramp in the second half of the year. As the IC giant, migrates its full range of microprocessors to the latest technology node in 2010, Intel expects to spend approximately US$7 billion on the transition over the next two years.

In January, 2009, Intel said that it would keep capital spending plans for 2009 inline with its 2008 levels, which were US$5.23 billion. The updated and more detailed CapEx spending plans, now revealed, indicate that Intel is pressing ahead with its manufacturing strategies that continue to stress its market leading position and future dominance, despite the uncertain economic environment over the next few years.

In Intel’s most recent financial conference call, executives cautioned that capital spending on its 32nm migration could be curtailed significantly, should market forces deteriorate it would leverage its current installed equipment base to support the migration, saving billions on new equipment purchases.

"We're investing in America to keep Intel and our nation at the forefront of innovation," stated Intel President and CEO Paul Otellini. "These manufacturing facilities will produce the most advanced computing technology in the world. The capabilities of our 32nm factories are truly extraordinary, and the chips they produce will become the basic building blocks of the digital world, generating economic returns far beyond our industry."

No new front-end fabs? Yet a higher percentage of spending will now be directed for those U.S. based manufacturing facilities.