Intel, the world's largest maker of computer chips, will spend $7 billion on new plants in the U.S. over the next two years, in a bid to extend its capabilities in manufacturing technology.
The investment will boost production of its most advanced 32- nanometer chips at facilities in Oregon, Arizona and New Mexico, supporting about 7,000 jobs.

The announcement won't alter Intel's current capital spending plans very much.. The company's budget for new plants and equipment this year will be slightly lower than 2008's $5.2 billion.

Intel's archrival, AMD, is handing over its manufacturing activities to a new company called GlobalFoundries.   AMD and its financial patner, Advanced Technology Investment Co. (ATIC) of Abu Dhabi, will spend $4.2-billion on the Fab 2 facility and would be located in Saratoga, New York. The move is part of AMD's grand strategy to return to profitability by shedding its expensive-to-operate and equip advanced fabs.

The move will create approximately 1,400 new direct jobs and more than 5,000 indirect jobs in the region. Once operational, Fab 2 will be the only independently-managed, advanced semiconductor manufacturing foundry in the United States, bucking the trend of manufacturing industries leaving the US.  The wafer fabrication facility willl use state-of-the-art 32-nanometer manufacturing technology.

Global foundries will also operate the AMD Dresden, Germany fabrication unit which has been initially built with significant German government grants.

Globalfoundries, which starts operations with 2,800 employees worldwide, will have its principal headquarters in Silicon Valley, and its R&D and manufacturing teams in New York, Dresden, and Austin.