Intel Plans To Build A $19 Billion Chip Factory In Germany

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Intel Plans To Build A $19 Billion Chip Factory In Germany

CALIFORNIA – Intel has confirmed plans to build a semiconductor factory in Germany as part of an investment of up to 80 billion euros or about 88 billion US dollars in Europe over the next decade.

The initial outlay to build the facility in Magdeburg, the capital of Saxony-Anhalt, was 17 billion euros or about 19 billion US dollars.

Quoted from the Engadget website, Wednesday (16/3/2022) the factory construction plan will begin with construction which is expected to take place in the first half of next year, as long as Intel gets a “thumbs up” from the European Commission.

Intel calls production that should start immediately “Silicon Junction” in 2027. As such, the factory won’t help offset the global chip shortage any time soon.

Intel said the two factories would build the chips using the most advanced Angstrom-era transistor technology. It expects to create 7,000 construction jobs during construction, 3,000 permanent positions and thousands of jobs across partners and suppliers.

Elsewhere, Intel will invest another 12 billion Euros or about 13 billion US dollars to expand the factory in Leixlip, Ireland. This investment simultaneously doubles manufacturing space and expands services there.

The company is also in discussions with Italy to build an assembly and packing facility there at a cost of up to 4.5 billion euros, or about 4.9 billion US dollars.

Previously, Intel planned to build a European research and development center near Plateau de Saclay, France. As a result, Intel expects to create 1,000 jobs, of which 450 will be opened by the end of 2024.

Intel also aims to establish a design center in Europe primarily in France. Further investments are aimed at Poland and Spain.

The company said the plan centers on balancing the global semiconductor supply chain with Intel’s major expansion in Europe.

Meanwhile, in February the European Union announced a budget of 49 billion US dollars to prevent future chip shortages and reduce dependence on parts manufactured in Asia.

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