Intel is looking to make the next significant upgrade to its processor line with its 32-nm processors currently code-named "Westmere." The next step in Intel's processor revolution includes a massive $7 billion dollar investment in its chip manufacture facilities here in the United States. Intel believes that the new processor will all it to leapfrog rivals such as AMD, which recently came out with its own 45-nm processors, although the company does have its sights set on a 32-nm chip eventually.

Intel unveiled its new 32-nm working microprocessor for both laptops and desktops at a Feb. 10 event in San Francisco. The chip giant also plans on investing $7 billion over the next two years on its 32-nm manufacturing technology, centered on upgrading production facilities in New Mexico, Arizona, and Oregon.

Intel CEO Paul Otellini announced the new facilities in a statement early on Feb. 10.

The new 32-nm chips, developed under the codename "Westmere," offer increased performance without an increase in the thermal envelope. Mobile and desktop processor production will begin in the fourth quarter of 2009, with rollout at an unspecified time after that.

Eventually, processors based on the Westmere design will appear in mobile, desktop and server segments.

The 32nm chips will feature two processing cores and four instructional threads, with integrated graphics. Chips for mainstream desktops are being developed under the codename "Clarkdale," while the processors for thin and light notebooks are being codenamed "Arrandale."

“With this 32-nm generation, we’re making our largest-ever investment in a single generation of silicon technology in the U.S.,” Stephen Smith, vice president and director of group operations for Intel’s Digital Enterprise Group, said during the presentation. “Westmere-based technology is not only for desktop and notebooks, but also some future server products.”

Smith went on to cite the 32-nm processor’s robust product health, stating that “our very first silicon on Westmere was capable of booting and running on a PC.” As such, Intel has made the decision to accelerate the 32nm product ramp.

In doing so, Intel has also de-prioritized the development of 45-nm processors, codenamed "Nehalem," that were previously coexisting in development with the 32-nm processors. Intel rival Advanced Micro Devices has recently released a 45-nm processor.

“Intel’s basically leapfrogged itself; there are just not that many other 45-nm processors,” John Spooner, an analyst with TBR, said in an interview. “And they’re doing it for a number of reasons: they want to keep the performance lead they have now, and they’re interested in reducing costs.”

Processors based on the 32-nm design allow Intel to manufacture more processors on each silicon wafer, which ups the manufacturing output and allows the company to spend less money.