Chip giant Intel is to create a 12-inch wafer plant at Hillsboro in Oregon which will cost an estimated $1.5 billion.
The product plant - known in the chip industry as a "fab" - will be used to develop .13 micron processors and will eventually produce fast processors in volume.
The fab at Hillsboro is the second phase of an existing facility and will be completed by the year 2000, the company said.
Intel also estimated it will spend nearly $3 billion on a number of research and development activities this year.
Are you paying attention?
Private equity firm Permira only acquired Magento from eBay for $200m three years ago
Before robots can take over from humans, we need more humans
It's not easy not being evil