Intel is bucking current trends and investing USD $7 billion in upgrading three of its US factories over the next two years.

The computer chipmaker said the investment is its largest on new manufacturing and represents 7,000 high-wage jobs.

Based in Santa Clara, California, Intel said its upgrade plans were for existing facilities in Arizona, New Mexico and Oregon to manufacture its 32-nanometer products.

Paul Otellini, president and CEO of Intel, said the investment decision was to ensure Intel and the US remained at the forefront of innovation.

He said the manufacturing facilities would produce the most advanced computing technology in the world.

Intel president and CEO Paul Otellini

"The capabilities of our 32nm 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," he said.

While more than a third of Intel’s sales are from outside the US, the company does 75 per cent of its semiconductor manufacturing and research-and-development spending in the US.

Chips makers such as Intel and Advanced Micro Devices have experienced a decline in demand as global computers sales wither in the face of the economic crisis.

Last month, Intel announced the closure of manufacturing sites in California and Oregon, and test facilities in Malaysia and the Philippines, resulting in 5,000 to 6,000 job losses.

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