Intel invests €80 bn into EU chip market to combat shortages
Intel has unveiled plans to invest as much as €80 billion into European Union semiconductor production over the next ten years.
The chip giant’s initial investments will begin with €17 billion into a semiconductor fabrication plant (fab) in Germany, a new research and development (R&D) hub in France and investment into R&D manufacturing and foundry services in Ireland, Italy, Poland and Spain.
The firm’s primary aim is to address the chip shortages and the need for a more balanced a resilient supply chain.
With an addition of its planned €12 billion expansion of the existing Ireland fab, the initial investment equates to €33 billion altogether.
The company’s announcement is “a first major achievement under the EU Chips Act,” European Commission president Ursula von der Leyen said.
“Our planned investment is a major step both for Intel and for Europe,” added 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. This broad initiative will boost customers around the world.”
The construction of the German site is set to start in the first half of 2023, consisting of two semiconductor fabs in Magdeburg, ahead of planned production in 2027.
The German project will see 7,000 new jobs for constructing the new fabs, along with 3,000 permanent jobs at Intel once production begins.
Meanwhile, the Ireland expansion will see Intel double its manufacturing space at the existing site and produce its upcoming Intel 4 node to its European manufacturing sites.
Intel says that the European investment is part of its IDM 2.0 strategy, which has seen a $20 billion investment into its Arizona site, and another $20 billion investment into a new Ohio site that the firm claims will be “the largest silicon manufacturing location on the planet.”
It added that Intel will power its global manufacturing operations with 100% renewable energy and achieve zero total waste to landfills.
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