Intel said it will spend between $6 billion and $8 billion to fund a new development fabrication plants in Oregon and to upgrade four existing plants in Oregon and Arizona. The plants will manufacture "next-generation" 22-nanometer microprocessors, or chips, the company said.
The company said this will support the creation of 800 to 1,000 permanent high-tech jobs as well as 6,000 to 8,000 construction jobs.
Intel also said the investment will allow it "to maintain its current manufacturing employment at these U.S. sites."
Intel spokeswoman Lisa Malloy said the new plant will be built in Hillsboro, Ore., near Portland, where the company already has a significant presence. Of the four plants slated for upgrade, two are in Hillsboro and two are in the greater Phoenix area.
Intel, based in Santa Clara, Calif., said it generates three quarters of its revenue from overseas markets, but employs three quarters of its chip-making employees in the United States.
"It does cost a bit more to build one of these factories from scratch in the U.S.," Intel chief executive Paul Otellini told CNN's Ali Velshi in a live interview.
But he said labor costs are not the main problem -- grants from foreign countries are the biggest incentives for U.S. companies to build factories overseas. He said the U.S. government should offer more incentives to build plants in America.