Intel (INTC) to Build $5B Facility in Arizona

Intel Corp. (NASDAQ: INTC) announced Friday that it plans to invest more than $5 billion to build a new chip facility at its site in Chandler, Arizona.

The announcement was made by Intel President and CEO Paul Otellini during a visit by President Barack Obama at an Intel facility in Hillsboro, Ore.

“The investment positions our manufacturing network for future growth,” said Brian Krzanich, senior vice president and general manager, Manufacturing and Supply Chain. “This fab will begin operations on a process that will allow us to create transistors with a minimum feature size of 14 nanometers. For Intel, manufacturing serves as the underpinning for our business and allows us to provide customers and consumers with leading-edge products in high volume."

The company said that the construction will begin in the middle of this year and is expected to be completed in 2013.

Disclosure I am long INTC shares.