Intel Corp has restarted a factory after spending $2 billion to retool it with the latest technologies that will let it produce more powerful chips more efficiently and at a lower cost.

The plant, known as Fab 12, is Intel's second that has begun volume production combining wafers that are 300 millimeters in diameter, about the size of a dinner plate, with a 65 nanometer etching process.

Intel, the world's top chipmaker, is moving to 65 nanometer technology from 90 nanometer.

Copyright Reuters, 2005