Intel has announced plans to invest as much as EUR80 billion (US$88 billion) in chip manufacturing in Europe over the next decade, including a mega fab project in Germany.
Intel plans to initially invest EUR17 billion in its mega fab project in Germany, which will see construction of two fabs in Magdeburg kick off in the first half of 2023, with production scheduled to come online in 2027, pending regulatory approval. The new fabs will produce chips using Intel's most advanced angstrom-era transistors for both foundry customers and Intel's own businesses in Europe and globally.
"Our planned investments are a major step both for Intel and for Europe," said Intel CEO Pat Gelsinger. "The EU Chips Act will empower private companies and governments to work together to drastically advance Europe's position in the semiconductor sector."
As part of this investment package unveiled, Intel also will set up a new R&D and design hub in France and invest in R&D, manufacturing and foundry services in Ireland, Italy, Poland and Spain. The remaining EUR33 billion will be spent on these projects.
Intel said it will pour an additional EUR12 billion into its Leixlip, Ireland site, where manufacturing space will double to bring Intel 4 process technology to Europe.
In Gdansk, Poland, Intel is increasing its lab space by 50% with a focus on developing solutions in the fields of deep neural networks, audio, graphics, data center and cloud computing. The expansion is expected to be completed in 2023, the company said.
In addition, Intel and Italy have entered into negotiations to enable a state-of-the-art backend manufacturing facility. With a potential investment of up to EUR4.5 billion, the backend facility will commence operations between 2025 and 2027. "This would be in addition to the foundry innovation and growth opportunities Intel expects to pursue in Italy based on its planned acquisition of Tower Semiconductor," Intel noted.
Besides, Intel plans to build its new regional R&D hub around Plateau de Saclay, France. It is also looking to establish its main European foundry design center locally in the foundry.
Intel noted it has been present in Europe for more than 30 years and currently employs around 10,000 people throughout the EU. In the past two years, Intel has spent more than EUR10 billion with European suppliers. "As Intel works to rebalance silicon supply globally, that spend is expected to nearly double by 2026," said the US vendor.
