Munich The American chip group Intel will invest 17 billion euros in Magdeburg and build two new chip factories there, as CEO Pat Gelsinger announced on Tuesday. The Handelsblatt had already reported on the forthcoming investment on Monday.
3,000 jobs are to be created in the factories. Construction work is scheduled to begin in 2023, and Intel plans to start series production four years later.
“Germany is a wonderful location,” praised Gelsinger in a virtual presentation of the project. Saxony-Anhalt’s Prime Minister Reiner Haseloff (CDU) emphasized: “This will be the largest investment in the history of Saxony-Anhalt.”
In addition, twelve billion euros are to flow into an existing location in Ireland. Gelsinger promised that Intel will soon be increasingly active there as a contract manufacturer for other chip manufacturers.
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In view of the serious delivery bottlenecks among contract manufacturers in the Far East, this is very interesting for European semiconductor manufacturers such as Infineon. In this way, they could free themselves from their dependency on Asian suppliers.
Intel is also investing heavily in Italy and France
Gelsinger announced further investments: Intel is in negotiations with the Italian government about a new plant for the packaging and testing of semiconductors. It should cost 4.5 billion euros, and 1,500 jobs would be created.
Intel is also planning a new research center in France. 1,000 jobs are to be created here, 450 of them by the end of 2024. In the future, France is to become the European Intel headquarters for the design of chips for high-performance computers and artificial intelligence. In addition, according to Gelsinger, Intel will massively expand the Intel locations in Gdansk and Barcelona.
The billions from America are very welcome to EU Commission President Ursula von der Leyen. Europe should regain a leadership position in chip production, she said at the Intel event on Tuesday. The EU’s goal is to increase Europe’s share of global semiconductor production from less than ten to 20 percent. In order to achieve this by the end of the decade, the EU presented the so-called “Chips Act” at the beginning of the current year, which includes 43 billion euros in subsidies.
Intel wants to build two new chip factories on this field on the A14.
(Photo: dpa)
Chancellor Olaf Scholz (SPD) also sees the commitment as extremely positive: “Germany welcomes Intel and the extensive investments that the company is planning to create 3,000 high-tech jobs and many more in the value chain.”
Federal Economics Minister Robert Habeck (Greens) agrees and rates the billion-euro investment as an important impetus in difficult times. “This shows that Germany is attractive for innovations and investments.” Subsidies are already planned and will be available as soon as the EU Commission gives the go-ahead and the corresponding budgetary funds are available. The ministry did not name a specific amount.
Gelsinger had repeatedly discussed a subsidy of 30 to 40 percent, i.e. between five and seven billion euros. According to the Intel CEO, this magnitude is necessary in order to be able to keep up with countries in Asia.
>> Read here: Catching up with the chips: Intel alone is not enough
The industry also has high hopes for Intel. “The big winners are above all the medium-sized companies, which will support Intel in setting up production as suppliers right on their doorstep,” said the industry association Silicon Saxony. The investment will contribute to expanding the competitiveness of the European semiconductor industry and to strengthening the technological sovereignty of the EU in the long term.
The federal agency for location marketing, Germany Trade and Invest (GTAI), expects Intel’s commitment to give Germany a new boost as a chip location. “I hope that such an investment will have a certain radiance,” said Max Milbredt. The manager is responsible for semiconductors at GTAI. Milbredt: “Other companies will also take a close look at what Intel is doing there.”
Contract manufacturer TSMC has been considering building a plant in Europe for some time. At the beginning of the year, the Taiwanese announced that it would take a while before a decision was made. Regions that have already tried to get the new Intel location that is now being built in Magdeburg would also have a chance in the future, said Milbredt. “We have the suitable locations for future projects in hand.”
Bayern, among others, had hopes. Silicon Saxony could also come into play, i.e. the Dresden region. In the Saxon state capital, the available space was too small for Intel.
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