Intel plans to build a $19 billion chip plant in Germany

It'll invest up to $88 billion in Europe over the next decade.


Intel has confirmed plans to build a semiconductor plant in Germany as part of an investment of up to €80 billion ($88 billion) in Europe over the next decade. The initial outlay for the facility in Magdeburg, the capital of Saxony-Anhalt, is €17 billion ($19 billion).

The so-called "mega-site" will actually comprise two factories. Planning will start right away with construction expected to get under way in the first half of next year, as long as Intel gets the thumbs up from the European Commission. Production should commence at what Intel is calling "Silicon Junction" in 2027. As such, the plant won't help offset the global chip shortage any time soon.

Intel says the dual plants will build chips using its top-of-the-line Angstrom-era transistor tech. It expects to create 7,000 construction jobs for the duration of the build, 3,000 permanent positions and thousands more jobs across partners and suppliers.

Elsewhere, Intel will invest another €12 billion ($13 billion) to expand a factory in Leixlip, Ireland. It will double the manufacturing space and expand foundry services there. The company's also in discussions with Italy to build an assembly and packing facility there at a cost of up to €4.5 billion ($4.9 billion).

Intel plans to build its European research and development hub near Plateau de Saclay, France. It expects to create 1,000 jobs as a result, with 450 of those opening up by the end of 2024. Intel aims to set up its main European foundry design center in France too. Further investments are earmarked for Poland and Spain.

The company says the plan is "centered around balancing the global semiconductor supply chain with a major expansion of Intel’s production capacities in Europe." In February, the European Union announced a $49 billion effort to prevent future chip shortages and reduce reliance on parts manufactured in Asia.

“The EU Chips Act will empower private companies and governments to work together to drastically advance Europe’s position in the semiconductor sector," Intel CEO Pat Gelsinger said. "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."

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