Intel Corp today announced it will spend $7 billion over the next two years to build advanced manufacturing facilities in the United States as it looks to 32 nm.

The commitment, announced by Intel President and CEO Paul Otellini at the Economic Club of Washington, DC, represents Intel’s largest-ever investment for a new manufacturing process and bucks the ongoing trend by many US-based companies to outsource manufcaturing.

“We’re investing in America to keep Intel and our nation at the forefront of innovation,” Otellini said in a statement. “These manufacturing facilities will produce the most advanced computing technology in the world. The capabilities of our 32-nm 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.”

The announcement comes after Intel in late January said it would end production at several factories, including its D2 facility in Santa Clara, Calif, and halt production at others, including its Fab 20, a 200-mm wafer fabrication facility in Hillsboro, Ore, potentially laying off 6000 employees in the process.  Intel also announced last week that it would shift its China operations, closing a test and assembly plant near Shanghai, moving that capacity to a plant in Chengdu, and impacting 2000 workers. Both moves were made as the company looked to realign manufacturing to current weak market demand.

Intel’s US investment for 32 nm will be made at existing manufacturing sites in Oregon, Arizona (pictured), and New Mexico, and will support approximately 7,000 jobs at those locations.

According to Intel, the company has a total workforce of more than 45,000 in the US and, while generating more than 75% of its sales overseas, carries out roughly 75% of its semiconductor manufacturing in the country. Intel also said about 75% of the company’s R&D spending and capital investments are also made in the US.

The first Intel processors to be built using 32-nm technology are codenamed “Westmere” and will initially be targeted at desktop and mobile mainstream systems. Production ramp for Westmere is expected to begin this year, with additional 32-nm products will follow in 2010.

By: DocMemory
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