Intel wants to invest 17 billion euros in new chip factories in Magdeburg. Overall, the company intends to spend 80 billion euros on new workshops across the EU within ten years.
Intel announced the first phase of its plans to invest up to €80 billion in the European Union over the next ten years across the entire semiconductor value chain, from research and development (R&D) to manufacturing and cutting-edge packaging technologies. The announcement includes plans to invest €17 billion in a state-of-the-art mega-site for semiconductor fabs in Germany, create a new R&D and design center in France, and R&D, manufacturing, and foundry services in Ireland, Italy, and Poland, Spain to invest. With this groundbreaking investment, Intel is planning to bring its most advanced technology to Europe, create a next-generation European chip ecosystem, and meet the need for a more balanced and resilient supply chain.
“Our state and the city of Magdeburg are pleased about Intel’s commitment to us. It will be the most significant investment in the history of Saxony-Anhalt. Such a huge investment and many thousands of new jobs are a quantum leap for our country. The project is also a milestone for the East German economic area and a success for all of Germany. Thank you for Intel’s decision to locate in Magdeburg. I would also like to thank everyone who has contributed to this success. We will do everything we can to give Intel the best possible start. A warm welcome to Saxony-Anhalt,” said Prime Minister Dr. Reiner Haseloff.
“Our extensive application, the many discussions, and, last but not least, the creation of the planning conditions for the Eulenberg industrial area have paid off. The planned construction of Intel’s mega chip factory will be the largest investment in our city’s history. My thanks go to everyone who has supported Magdeburg as a location over the past few months, in particular Intel, the European Union, the federal government, the state of Saxony-Anhalt, and the city council. The chip manufacturer’s project will give the development of our city a new dynamic, which will allow Magdeburg to grow into an economic center in the middle of Europe,” emphasized Dr. Lutz Trümper, Lord Mayor of Magdeburg.
Pat Gelsinger, Intel CEO, said, “Our planned investments are an important step for Intel and Europe. The EU Chips Act will enable private companies and governments to work together to improve Europe’s position in the semiconductor sector drastically. This broad initiative will boost Europe’s innovation in research and development and bring world-class manufacturing to the region, benefiting our customers and partners worldwide. We are determined to play an integral role in shaping Europe’s digital future for decades to come.”
Expansion of top manufacturing capacities for chips ‘Made in Europe’
The investment program aims to balance the global semiconductor supply chain through a significant expansion of Intel’s manufacturing capabilities in Europe. In the first phase, Intel plans to set up two semiconductor factories in Magdeburg, the state capital of Saxony-Anhalt, which will be the first of their kind. Planning will begin immediately, with construction scheduled to start in the first half of 2023 and commissioning planned for 2027, subject to European Commission approval. The new fabs are expected to deliver chips with Intel’s most advanced Angstrom-era transistor technologies and serve the needs of both foundry customers and Intel’s Europe and global IDM (Integrated Device Manufacturer) 2.0 strategy.
Located in the heart of Europe and with top talent, excellent infrastructure, and an existing ecosystem of suppliers and customers, Germany is an ideal place to create a new hub – a “Silicon Junction” – for advanced chip manufacturing. Intel plans to invest €17 billion initially and create 7,000 jobs throughout construction, 3,000 permanent high-tech jobs at Intel, and tens of thousands of additional jobs at suppliers and partners. Intel plans to call the new location “Silicon Junction,” the technology hub. This “Silicon Junction” will serve as a connection point for other innovation and manufacturing hubs across the country and region.
Intel continues to invest in its expansion project in Leixlip, Ireland, spending an additional €12 billion to double its manufacturing footprint and bring Intel 4-process technology to Europe and expand foundry services. Once this expansion is complete, Intel’s total investment in Ireland will be more than €30 billion.
In addition, Intel and Italy have entered into negotiations to set up a state-of-the-art back-end manufacturing facility. With a potential investment of up to €4.5 billion, this factory would create about 1,500 jobs at Intel and another 3,500 at suppliers and partners, with operations expected to start between 2025 and 2027. Intel and Italy intend to make this facility one of the first of its kind in the EU with new and innovative technologies. This would be in addition to the innovation and growth opportunities Intel is seeking in Italy through its proposed acquisition of Tower Semiconductor. Tower has a significant partnership with STMicroelectronics, a manufacturing facility in Agrate Brianza, Italy.
Intel plans to spend more than 33 billion euros on these manufacturing investments. By significantly expanding its manufacturing capabilities across the EU, Intel would lay the groundwork for bringing different parts of the semiconductor value chain closer together and increasing supply chain resilience in Europe.
Strengthening European innovation capacities
R&D and design are critical to advance semiconductor manufacturing at the highest level. Europe is home to world-class universities, research institutes, and leading chip designers and suppliers. Supporting this innovation cluster with additional investments in research and development and linking this to Intel’s plans for cutting-edge manufacturing will boost the innovation cycle in Europe and also give small and medium-sized enterprises (SMEs) better access to advanced technologies.
Intel plans to build its new European R&D center near Plateau de Saclay, France, and create 1,000 new high-tech jobs at Intel, of which 450 will be available by the end of 2024. France will become Intel’s European headquarters for high-performance computing (HPC) and artificial intelligence (AI). HPC and AI innovations will benefit a wide range of industries, including automotive, agriculture, climate, drug discovery, energy, genomics, life sciences, and security – thereby significantly improving the lives of all Europeans.
In addition, Intel plans to set up its main European foundry design center in France to offer design services and materials to French, European, and global industrial partners and customers.
In Gdansk, Poland, Intel is increasing its laboratory space by 50%, focusing on developing solutions in deep neural networks, audio, graphics, data center, and cloud computing. The expansion is expected to be completed in 2023.
These investments will strengthen Intel’s longstanding relationships with European research institutes across the continent, including IMEC in Belgium, the Delft University of Technology in the Netherlands, CEA-Leti in France, and the Fraunhofer Institutes in Germany. Also, in Italy, Intel is developing interesting partnerships with Leonardo, INFN, and CINECA to explore advanced new solutions in HPC, memory, software programming models, security, and cloud.
The Barcelona Supercomputing Center and Intel have collaborated on exascale architecture for the past decade in Spain. Now they are developing a zettascale architecture for the next decade. The Supercomputing Center and Intel plan to set up joint labs in Barcelona to boost computing.
Positive spillover effects across the EU
Intel’s ambitious European investment plans will positively impact all industries and the Member States. Building manufacturing capacity and R&D capacity on this scale will set a virtuous cycle of innovation.
Intel has been present in Europe for more than 30 years and currently employs around 10,000 people. Intel has spent more than 10 billion euros with European suppliers in the past two years. As Intel works to rebalance silicon supplies worldwide, spending is expected to double by 2026 nearly.
Intel’s investment plans will accelerate the development of leading-edge chip designs, boost the European materials and equipment supplier industry, and serve the strong customer base across Europe. In addition, the investments would attract thousands of additional engineers and technical professionals, expanding the pool of innovators, entrepreneurs, and visionaries who will power Europe’s digital and green future.
Supporting the green transition in Europe
A state-of-the-art European semiconductor ecosystem will support the green transition and contribute to the realization of the European Green Deal. More efficient chips can lower the power consumption of the next wave of digital hardware while driving HPC and AI solutions. In 2020, Intel unveiled its RISE 2030 strategy and corporate responsibility goals to accelerate the adoption of responsible, inclusive, and sustainable practices in this decade. In line with the EU’s climate goals, Intel is on track to meet its 2030 sustainability goals. These include positive net water use through water conservation, recycling and recovery, and funding local water projects that restore more freshwater than is consumed.