Srestha RoyIntel has announced its plans for a massive chip manufacturing facility in Germany as part of a €80 billion investment in Europe during the next decade.
The goal, according to the US company, is to create “a next-generation European chip ecosystem” and contribute to addressing the continent’s carmaking industry’s ongoing global semiconductor shortage.
Intel’s initial investment of €33 billion, including €17 billion for German plans, will help satisfy growing demands for chips used in computers, cars, smartphones, and other gadgets, as well as decrease Europe’s reliance on Asian suppliers in the long haul. The chipmaker is distributing its investments across a half-dozen countries, expanding its existing factory in Ireland, establishing a design and research facility in France, and establishing a packaging and assembly facility in Italy.
Last month, the European Commission unveiled plans to boost chip production in the European Union, including proposed new legislation to ease state aid rules for chip factories and allow for an additional €15 billion in public and private investment.
Intel's €80 billion European investment plan is a first major achievement under the #EUChipsAct.
This is just the beginning. The #EUChipsAct will make Europe a leader in the global semiconductor production.
Europe is a powerhouse of innovation. And we are open for business. pic.twitter.com/lWPZX4tKE3
— Ursula von der Leyen (@vonderleyen) March 15, 2022
Ursula von der Leyen, President of the European Commission, welcomed Intel’s latest statement and stated that the bloc’s new Chips Act would make the continent “a leader in global semiconductor production.”
Intel will build two factories in Magdeburg, Germany, creating 7,000 construction jobs, 3,000 permanent jobs at the company, and tens of thousands more jobs at suppliers and partners. The company will invest another €12 billion in an Irish facility, bringing its total investment in the country to more than €30 billion.
It is in talks with Italy about establishing a back-end manufacturing facility for up to €4.5 billion, with plans to begin operations between 2025 and 2027.
Intel intends to establish a new European research hub in France, creating 1,000 new high-tech jobs. They will also expand their lab space in Poland and also plans to establish joint labs for advanced computing with the Barcelona Supercomputing Center in Spain.