Intel plans to invest $345 million to upgrade production facilities at two of its US chip manufacturing sites.

The investments will be used to increase output capabilities at two factories - Fab 17 in Hudson, Massachusetts and Fab 23 in Colorado Springs, Colorado - the company said.

The two facilities manufacture computer chipsets and communications, and flash memory chips, Intel said.

The company will invest $190 million in Colorado Springs, allowing it to complete final processing steps for microprocessors at the facility. The project will create several hundred new jobs, according to Intel.

The $155 million Intel plans to invest in Hudson will be used to increase overall capacity by adding new production equipment and reconfiguring portions of the factory. The Hudson investment will create more than 300 new manufacturing jobs, Intel said.

Separately, the company announced it has signed an agreement to purchase office property in Fort Collins, Colorado, for some of its Itanium processor design team.