Intel sets a $36 Billion Investment plan in E.U!

Mar 16, 2022 thejournalbiz

Intel Corp. said it would invest $36 billion in chip production and research across Europe, including a new chip-making complex in Germany, to keep pace with surging demand for semiconductors. WSJ reports

Intel a semiconductor giant will begin building a new factory in Germany starting next year!

CEO Pat Gelsinger said Intel already selected the city of Magdeburg, Germany, to put up what would be one of the biggest and most advanced semiconductor manufacturing facilities on the Continent.

The company plans a down payment of about $18.6 billion, the equivalent of about €17 billion, on that facility.

It is the second multi-billion-dollar plant investment Intel has announced in 2022,

Intel last year said it would expand in Arizona and New Mexico, as well, as Mr. Gelsinger tries to gain a step on aggressive competitors,the likes of Nvidia and AMD

*President of European Commission, tweets on Intel’s deal

Intel's €80 billion European investment plan is a first major achievement under the #EUChipsAct.

This is just the beginning. The #EUChipsAct will make Europe a leader in the global semiconductor production.

Europe is a powerhouse of innovation. And we are open for business. pic.twitter.com/lWPZX4tKE3

— Ursula von der Leyen (@vonderleyen) March 15, 2022

Intel’s CEO,

said the company would invest up to €80 billion in Europe, including (R&D) research & development facilities in France, as well as manufacturing facilities in Ireland, Italy, Poland and Spain.

Construction of two new factories on the German site will start in the first half of next year, with production slated to start in 2027 pending European Commission approval, Intel said.

They will make some of the company’s most advanced chips, the company said, and would serve both Intel’s internal needs and make chips for outside customers.

Intel is among a range of chip companies responding to unprecedented demand for digital products and a global chip shortage that has amplified the need for more manufacturing.

Semiconductor industry sales globally surpassed $500 billion for the first-time last year, and executives believe that total could double in less than a decade.

Intel is also expanding its existing manufacturing in Ireland with about $13 billion doubling its manufacturing space and focusing there on one of its more advanced chip-making technologies.

In Italy, Intel plans to spend up to about $4.9 billion (€4.5 billion) in back-end manufacturing, while

In France, the company plans a (R&D) facility, and in Poland it is increasing its laboratory space.

the European Commission proposed €43 billion of support for the industry, aiming to double Europe’s global share of manufacturing to 20% by 2030.

Thierry Breton, European commissioner for the internal market who has spearheaded incentive proposals, said advanced chips had become an economic and geopolitical priority.