According to the firm, it will be the most advanced, high volume semiconductor site in the world.
It has been announced that construction is due to commence in the middle of this year, and is expected to be completed in 2013.
Brian Krzanich, Intel's senior vice president and general manager of manufacturing and supply chain, commented: "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."
He added: "The unmatched scope and scale of our investments in manufacturing help Intel maintain industry leadership and drives innovation."
Intel is the inventor of the x86 series of microprocessors, which are found in most personal computers.
The firm was founded in 1968 and is currently based in Santa Clara, USA.
