During the past year, the SLD collaboration completed the construction
and began the operation of a new vertex detector (VXD3) employing 307
million pixels. This detector, based on 96 CCDs of 13 cm(2) area each
, is an upgrade of the original vertex detector of SLD (VXD2), made po
ssible by advances in the technology of CCD detectors. Its improved im
pact parameter resolution, larger solid angle coverage and virtually e
rror0free track linking will enhance the SLD measurement of the polari
zation-enhanced forward-backward asymmetry for band c- quarks, increas
e the precision of the measurement of the b-fraction in hadronic Z dec
ays, and open the possibility to observe B-5(0)-mixing. Full separatio
n of primary, secondary and tertiary vertices is accessible. A descrip
tion of the mechanics and electronics of VXD3 are presented along with
results from the first data.