Intel to set up new chip manufacturing hub in Germany

Intel has announced plans for setting up a massive “semiconductor fab mega-site in Germany” worth 17 billion euros.

The announcement is the first phase of its plans to invest as much as 80 billion euros in the European Union over the next decade along the entire semiconductor value chain from research and development (R&D) to manufacturing to packaging technologies, the company said in a statement.

“Our planned investments are a major step both for Intel and for Europe. The EU Chips Act will empower private companies and governments to work together to drastically advance Europe’s position in the semiconductor sector. This broad initiative will boost Europe’s R&D innovation and bring leading-edge manufacturing to the region for the benefit of our customers and partners around the world. We are committed to playing an essential role in shaping Europe’s digital future for decades to come,” said Pat Gelsinger, CEO of Intel.

According to Intel, the new semiconductor fabs will come up in Magdeburg, with construction expected to begin in the first half of 2023 and production planned to come online in 2027, pending European Commission approval. The new fabs are expected to deliver chips using Intel’s Angstrom-era transistor technologies, serving the needs of both foundry customers and Intel for Europe and globally as part of the company’s IDM (integrated device manufacturer) 2.0 strategy.

Intel said that initially, it aims at creating 7,000 construction jobs over the course of the build, 3,000 permanent high-tech jobs at Intel, and tens of thousands of additional jobs across suppliers and partners.

“Intel is also continuing to invest in its Leixlip, Ireland, expansion project, spending an additional 12 billion euros and doubling the manufacturing space to bring Intel 4 process technology to Europe and expand foundry services. Once complete, this expansion will bring Intel’s total investment in Ireland to more than 30 billion euros,” the statement noted.