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Intel to invest $6-8B in U.S. wafer fabs

Santa Clara, Calif. — Intel Corp. plans to invest between $6 billion and $8 billion to fund a new development fab in Oregon and upgrades to four existing U.S. factories to manufacture next-generation 22-nanometer (nm) process technology. The projects will support 6,000 to 8,000 construction jobs and result in 800 to 1,000 new permanent high-tech jobs.

“Today’s announcement reflects the next tranche of the continued advancement of Moore’s Law and a further commitment to invest in the future of Intel and America,” said Intel president and CEO Paul Otellini, in a statement. “The most immediate impact of our multi-billion-dollar investment will be the thousands of jobs associated with building a new fab and upgrading four others, and the high-wage, high-tech manufacturing jobs that follow.”
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The new investments support Intel’s leadership role in advanced semiconductor manufacturing. The chip maker’s brand-new development fab in Oregon — to be called “D1X” — is scheduled for R&D startup in 2013. Upgrades are also planned for a total of four existing factories in Arizona (known as Fab 12 and Fab 32) and Oregon (known as D1C and D1D).

While Intel generates approximately three-fourths of its revenues overseas, it maintains three-fourths of its microprocessor manufacturing in the United States. This new investment also allows Intel to maintain its existing manufacturing employment base at these sites, according to the company.

This new capital expenditure follows a U.S. investment announcement made in February 2009 to support state-of-the-art upgrades to its manufacturing process. Those upgrades resulted in 32-nm process technology, which has already produced computer chips being used in PCs, servers, embedded and mobile devices around the world.

Intel’s first 22-nm microprocessors, codenamed “Ivy Bridge,” will be in production in late 2011 and will boost further levels of performance and power efficiency, said Intel.