WASHINGTON DC, USA: Intel president and CEO Paul Otellini has announced that the company would spend $7 billion over the next two years to build advanced manufacturing facilities in the United States. The investment funds deployment of Intel's industry-leading 32nm manufacturing technology that will be used to build faster, smaller chips that consume less energy.

The commitment represents Intel's largest-ever investment for a new manufacturing process.

"We're investing in America to keep Intel and our nation at the forefront of innovation," Otellini said. "These manufacturing facilities will produce the most advanced computing technology in the world. The capabilities of our 32nm factories are truly extraordinary, and the chips they produce will become the basic building blocks of the digital world, generating economic returns far beyond our industry."

Intel's investment will be made at existing manufacturing sites in Oregon, Arizona and New Mexico and will support approximately 7,000 high-wage, high-skill jobs at those locations, part of a total Intel workforce of more than 45,000 in the US. Intel, while generating more than 75 percent of its sales overseas, carries out roughly 75 percent of its semiconductor manufacturing in the US. At the same time, about 75 percent of the company's R&D spending and capital investments are also made in the US.

The technology used in Intel's manufacturing process builds chip circuitry 32nm (32/billionth of a meter or about 1/millionth of an inch), across incredibly small, atomic level structures.

The first Intel processors to be built using this technology are codenamed "Westmere" and will initially be used in desktop and mobile mainstream systems. Westmere combines Intel's latest high-performance micro-architecture ("Nehalem") with graphics capability integrated into the processor. As a result, computer manufacturers will be able to increase performance and simplify system manufacturing compared to current systems.

Outstanding 32nm manufacturing and product health are enabling Intel to accelerate the Westmere production ramp beginning in 2009. Additional 32nm products will follow in 2010.