Intel to Construct US$ 19bn Chip Manufacturing Unit in Germany

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As part of its expanded investments in Europe, Intel intends to build a US$ 19bn chip manufacturing unit in Germany. Intel’s European expansion is the most recent chapter in the company’s factory-building spree. During the worldwide semiconductor scarcity, the business is rapidly increasing its production footprint – both at home and overseas.

According to a company announcement, the tech behemoth has set aside US$ 88bn for investments in the continent over the next decade, and the new facility in Germany will be one of the first steps toward “creating a next-generation European chip ecosystem and emphasizing the importance of a more balanced and sustainable supply chain.”

The mega-site for Intel’s US$ 19bn chip manufacturing unit in Germany, which would be located in Magdeburg, will consist of two independent plants, with Intel hoping to begin construction in the first half of 2023, with production coming online at the end of 2027.

The project as a whole will generate 7,000 construction employment, 3,000 permanent roles at the facility once it is operational, and thousands more for its many partners and suppliers. Aside from Germany, the corporation plans to create a new research and development center in France, as well as production sites in Ireland, Italy, Poland, and Spain.

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Intel’s plans to expand in Europe

“Our planned efforts are a huge step forward for both Intel and Europe,” said Intel CEO Pat Gelsinger in a statement. “The EU Chips Act will enable private enterprises and governments to collaborate to significantly strengthen Europe’s position in the semiconductor industry.” “This integrated process will increase European R&D innovation and bring cutting-edge manufacturing to the region for the benefit of our global customers and partners.” We intend to play a big part in defining Europe’s digital destiny over the next many decades.”

Gelsinger also stated that Intel would invest in research in France, expand its lab presence in Poland and Spain, and negotiate a multibillion-dollar back-end manufacturing plant with Italy. He suggested that the German fabs could start producing chips in 2027 provided Intel secures enough government funding to make the project competitive. Over the following decade, the firm plans to invest up to 80 billion euros (about $88 billion) in the European Union.