Intel has cut the ribbon on its latest $3bn chip factory.

The new facility is located on the company's Chandler, Arizona campus. It will cover an area of more than one million square feet and employ 1,000 workers.

Dubbed "Fab 32," the facility will focus on 45nm processors. Intel is already producing 45nm chips in its Oregon and hopes to have the first 45nm Penryn processors on the streets by mid-November.

Intel's second 45nm line, named Nehalen, is due to arrive in 2008. The company claims that the chips mark its "greatest semiconductor breakthrough in 40 years."

The company promises that the factory will have a minimal impact on Arizona'a desert climate. By using such measures and water conservation and constructing chips on more efficient 300mm wafers, Intel estimates that Fab 32 will conserve 70 per cent more water and have 15 per cent lower emissions than traditional plants.

The Arizona plant is the second of four facilities Intel plans to equip for 45nm chip production. In addition to the Hillsboro, Oregon and Chandler, Arizona plants Intel plans to open factories in Kiryat Gat, Israel and Rio Rancho, New Mexico before the end of next year.