Intel to build a new €17 billion chip manufacturing hub in Germany

Intel has now revealed plans to set up a massive semiconductor fab mega-site in Germany worth around 17 billion euros.

The new announcement is the first phase of its plans to invest as much as around 80 billion euros in the European Union over the next decade along with the entire semiconductor value chain from the R&D department to manufacturing to packaging technologies.

Pat Gelsinger, CEO of Intel, said, "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."

According to Intel, the new semiconductor fabs will come up in Magdeburg, with construction expected to begin in the year 2023 and production planned to come online in the year 2027, pending European Commission approval.

The new fabs are expected to deliver chips using the Intel Angstrom era transistor technologies, serving the needs of both the foundry customers and Intel for Europe and across the globe as a part of the company’s IDM (Integrated Device Manufacturer) 2.0 strategy.

Intel reveals that initially, it aims at creating around 7000 construction jobs over the course of the entire build, 3000 permanent high tech jobs at Intel and lots of additional jobs across the suppliers and partners.