Intel details initial €33B investment in Europe

Intel has announced to spend more than 33 billion euros on production capacity expansions across Europe. The chipmaker plans to put an initial 17 billion into a leading-edge semiconductor fab mega-site in Magdeburg, Germany, and up to 4.5 billion into a new Italian back-end facility, create a new R&D and design hub in France and invest in R&D, manufacturing and foundry services in Ireland, Poland and Spain. This first phase of the company’s grand scheme to infuse as much as 80 billion euros into the EU semiconductor value chain over the next decade will also further strengthen its long-standing relationships with European research institutes across the continent, including Delft University of Technology, Imec, CEA-Leti and the Fraunhofer Institutes.

The European investment program is centered around balancing the global semiconductor supply chain. In the initial phase, Intel will develop two first-of-their-kind fabs in Magdeburg. Planning will start immediately, with construction expected to begin in the first half of 2023 and production to come online in 2027, pending European Commission approval. The new fabs are expected to deliver chips using Intel’s most advanced transistor technologies, serving the needs of both foundry customers and Intel for Europe and globally.

According to Intel, Germany is an ideal place to establish a new hub, dubbed the “Silicon Junction.” The initial 17-billion investment is to create 7,000 construction jobs over the course of the build, 3,000 permanent high-tech jobs at the chipmaker and tens of thousands of additional jobs across suppliers and partners. The Silicon Junction will serve as the connection point for other centers of innovation and manufacturing across the country and region.