Intel has announced the first phase of its plans to invest around 80 billion euros in the European Union over the next ten years along the entire semiconductor supply chain. The news comes after the commitment made by Europe with the European Chips Act last February, with which the EU aims to Increase chip manufacturing on the continent from 9 to 20 percent by 2030. Intel’s announcement concerns the investment of the first 17 billion euros for the construction of a state-of-the-art mega-plant in Germany for semiconductor manufacturing, the creation of a new research and development (R&D) and design hub in France, and investments in R&D, manufacturing, foundry services and back-end stages of production in Ireland, Italy, Poland and Spain. With this first investment, Intel plans to bring its advanced technology to Europe, creating the next generation of European chips and the industry ecosystem, addressing the need for a more geographically balanced and more resilient industry supply chain.
The investment program hinges on the goal of balancing the global semiconductor supply chain through a significant expansion of Intel’s manufacturing capacity in Europe. In the initial stage, Intel plans to develop two semiconductor factories (“fabs”), first of their kind, in Magdeburg, capital of the federal state of Saxony-Anhalt, Germany. The design will begin immediately, while the start of construction is estimated for the first half of 2023 and the start of production is scheduled for 2027, pending approval by the European Commission. The new fabs will produce chips based on Intel’s most advanced transistor technologies, with Angstrom-era manufacturing processes. As envisioned in the company’s new strategy, known as IDM 2.0 (Integrated Device Manufacturer), these chips will be able to meet the demands of both European and global customers, operating as a foundry, as well as Intel’s own products. In Germany, Intel plans to initially invest € 17 billion, creating 7,000 plant construction jobs, 3,000 permanent high-tech jobs at Intel, and tens of thousands of additional supplier jobs. and partner
Intel and the Italian state are in the negotiation phase for the construction of a state-of-the-art plant dedicated to the back-end phase of the chip manufacturing process. With a potential investment of up to 4.5 billion euros, this factory can create approximately 1,500 jobs at Intel and another 3,500 jobs among suppliers and partners. Intel and Italy aim to make this plant an excellence in the European Union with new and innovative technologies. In addition, Intel has stated its goal of bringing innovation and growth opportunities of the semiconductor foundry service to Italy through the acquisition of Tower Semiconductor. In fact, Tower has a significant partnership with STMicroelectronics, with a fab located in Agrate Brianza. Around Plateau de Saclay, France, Intel plans to build its new European R&D hub, creating 1,000 new high-tech jobs in the company, with 450 jobs available by the end of 2024. France will become Intel’s European headquarters for design skills for supercomputing and artificial intelligence. In addition, Intel intends to establish its main European foundry design center in France. Intel will also continue to invest in Leixlip, Ireland for the plant expansion project. It will employ an additional 12 billion euros and double the production space, bringing the Intel 4 production process to European soil and expanding the semiconductor foundry service for external customers. Once the expansion is complete, Intel’s total investment in Ireland will amount to over € 30 billion.
Pat Gelsinger, CEO of Intel, said: “The investments we have planned are a major step for both Intel and Europe. The EU Chips Act will empower private companies and governments to work together to advance. Europe’s position in the semiconductor sector is remarkable. This large initiative will enhance European research and development and bring cutting-edge chip manufacturing to the continent, for the benefit of customers and partners around the world. We are committed to making a contribution. decisive for the development of the digital future of Europe in the years to come “.