Intel has said that it will build a new chip manufacturing facility at Chandler, Arizona, with an investment of approximately $5bn.

The new Arizona factory is designated as Fab 42, which will be an advanced, high-volume semiconductor manufacturing facility.

Intel said that the construction of the new facility will begin in the middle of 2011 and is expected to be completed in 2013.

The company said that the new 14-nanometer process will enable it to manufacture efficient computer chips.

The new Fab 42 will be built as a 300mm factory, which refers to the size of the wafers that contain the computer chips.

Intel manufacturing and supply chain senior vice president and general manager Brian Krzanich said the fab will begin operations on a process that will allow them to create transistors with a minimum feature size of 14 nanometers.

"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," Krzanich said.