Intel Corp., the world's largest chip maker, said Monday that it will spend 3 billion US dollars to build a new 300-mm wafer fabrication facility in southern US.

The new fab, to be built in Chandler, Arizona, will begin production of microprocessors in the second half of 2007 on 45 nanometer process technology, Intel said.

"This investment positions our manufacturing network for future growth to support our platform initiatives and will give us additional supply flexibility across a range of products," said Paul Otellini, Intel CEO.

He said the unmatched scope and scale of Intel's investments in manufacturing help the company maintain industry leadership and drive innovation.

When completed, the new fab will become Intel's sixth 300-mm wafer facility. Intel currently operates four 300-mm fabs and has two 300-mm fabs under construction.

Source: Xinhua