In a change in strategy, chip giant Intel Corp. plans to make 65nm devices—not 90nm products—within its new fab in China.

Intel announced two years ago its intention to invest $2.5 billion to build a 300mm fab in the northern Chinese city of Dalian. The fab, to be its first in China, was initially slated to use 90nm technology to make chipsets.

"We originally announced it at 90nm, but said there was a chance that we'd go to 65nm. We have the U.S. government license, so that when we start we'll be on 65nm," according to a spokesman at Intel.

Intel may have missed the market window for 90nm, considered an older technology by the company's standards. Intel itself is ramping up 45nm devices, with 32nm products due by year's end.

Intel has denied rumblings within the semiconductor equipment community that it has pushed out plans for a 300mm fab in China, saying that the company remains on schedule to have the facility in production next year.