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Intel Expands Chip Plant Investments in EuropeIntel Expands Chip Plant Investments in Europe

A step towards global diversification of chip manufacturing

Deborah Yao

June 20, 2023

2 Min Read
Rendering of proposed chip fab in Magdeburg, GermanyIntel

At a Glance

  • Intel doubles its investment in chip-making facilities in Germany to more than 30 billion euros.
  • Along with sites in Poland and Ireland, Intel hopes to build a 'capacity corridor' for a chip supply chain in Europe.

Chipmaker Intel is planning to invest more than 30 billion euros ($33 billion) to open two semiconductor fabrication plants in Germany’s ‘Silicon Junction,’ doubling its previous commitment.

The new wafer fabrication facilities will be in Magdeburg, the capital of the Saxony-Anhalt state in northeastern Germany. Intel said the revised commitment comes with expanded incentives from the German government.

In March, the chipmaker announced a 17 billion euro ($18.7 billion) investment to open a new chip fab in Germany, an R&D and design center in France and back-end production facilities in Spain, Ireland, Italy and Poland.

Germany had offered 6.8 billion euros ($7.4 billion) in incentives to the company but later Intel asked for at least 10 billion euros ($11 billion) given higher energy and construction costs, according to FT. In turn, German officials asked for a larger commitment from Intel.

This project will be the largest foreign investment in Germany’s history and is key to the EU doubling its global chip market share to 20% by 2030.

Intel said the Silicon Junction will connect other centers of innovation and manufacturing across the EU, creating an ecosystem of suppliers and tech companies in the region.

The initiative is expected to create 7,000 construction jobs during the first phase of building and around 3,000 permanent tech jobs.

Related:Intel to make $88B investment in the EU’s semiconductor industry

Last week, Intel said it was investing up to $4.6 billion in Wrocław, Poland to open a new chip assembly and test facility. It also has a wafer fab in Leixlip, Ireland.

The German, Polish and Irish sites will create “a capacity corridor from wafers to complete packaged products that is unrivaled and a major step toward a balanced and resilient supply chain for Europe,” said Intel CEO Pat Gelsinger, in a statement.

Intel estimates that the German plants will take five years to build.

Separately, Intel reportedly is planning to invest around $25 billion in a chip manufacturing plant in Israel, according to The Times of Israel.

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About the Author(s)

Deborah Yao

Editor

Deborah Yao is a Stanford grad who has worked at Amazon, the Wharton School and The Associated Press.

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