Intel's 'Tiny' Transition Stays on Track

The company expects to introduce 65-nanometer chips next year.
By Chris Kraeuter ,

Intel's (INTC) - Get Report transition to even tinier chips is on track for next year, said an executive of the world's largest chipmaker.

Intel currently makes the majority of its chips with transistors spaced 90 nanometers apart, down from 130 nanometers only five months ago. A few other leading chipmakers also make 90-nanometer processors. The industry's next product transition is to 65 nanometers.

Smaller chips run more efficiently and are cheaper, but they are also more complex to manufacture in high volumes.

Steven Grant, vice president of Intel's Technology and Manufacturing Group, said Wednesday afternoon that Intel is pressing forward with its transition plans. "Sixty-five-nanometer is on track and looking good," Grant said.

Earlier in the day, Intel demonstrated a working computer with its 65-nanometer mobile processor, known as Yonah.

Grant also said Intel is continuing with plans for a new state-of-the-art factory in Ireland despite the European Union's inclination to deny a subsidy for the plant. Grant said Intel decided to pull its application for the grant after the E.U. strongly indicated that it wouldn't approve it.

"Fab 24-2 is going forward," he said, referring to the factory's name. "It is critical."

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