The announcement was made by Intel president and chief executive Paul Otellini during a visit by President Barack Obama to an Intel facility in Hillsboro, Oregon.
Intel, the world's largest computer chip maker, said construction of the new facility, Fab 42, in Chandler, Arizona, will begin in the middle of this year and it is expected to be completed in 2013.
"When completed, Fab 42 will be the most advanced high-volume semiconductor factory in the world," Otellini said, and will create thousands of jobs.
Intel said the new Arizona factory will make transistors with a minimum size of 14 nanometers.
"Building the new fab on the leading-edge 14-nanometer process enables Intel to manufacture more powerful and efficient computer chips," Intel said in a statement.
A nanometer is one-billionth of a meter or one ninety-thousandth the width of a human hair.
"The investment positions our manufacturing network for future growth," said Brian Krzanich, senior vice president and general manager for manufacturing and supply chain at Intel.
"The products based on these leading-edge chips will give consumers unprecedented levels of performance and power efficiency across a range of computing devices from high-end servers to ultra-sleek portable devices," Krzanich said.
Intel announced plans in October to invest between $6 billion and $8 billion in its US manufacturing facilities to produce next-generation computer chips, including building a new fabrication plant in Oregon.
The new Arizona facility is in addition to the previously announced investment.
Obama traveled to Intel's most sophisticated semiconductor plant in Oregon to tout his plans to invest in science and education despite seeking ways to rein in spending in other areas to deal with a ballooning deficit.
Obama also Friday named Otellini to his jobs council in a move designed to harness the power of innovation to ignite economic and employment growth.
Otellini will serve on the president's Council on Jobs and Competitiveness, an advisory board, headed by General Electric chief executive Jeffrey Immelt that is dedicated to finding new ways to boost growth, hiring and the education and training of US workers.