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Intel is building a €17 billion factory in Germany and expanding its Ireland site with €12 billion

Intel is on an expansion drive, and it is adding a new €17 billion hub in Germany while expanding its existing facilities in Ireland at the cost of €12 billion.

Intel is investing massively in Europe, with a concentration on two sites. The American chipmaker will construct a leading-edge semiconductor fab mega-site in Germany, costing €17 billion. This will happen in tandem with the expansion of its complex in Ireland for €12 billion.

France is also getting some of the action, where Intel will set up a new R&D and design center. Intel is stopping over other countries, including Italy, Poland, and Spain, which will host manufacturing, foundry services, and research and create not less than 6,000 jobs.

In this wave of Europe-focused investment, Intel will invest over €33 billion, but that is only a part of the €80 billion the company is bringing to Europe in the next decade.

The German mega plant is located in Magdeburg, where construction will commence next year. Intel expects production to begin in 2027, manufacturing its next-generation Angstrom-era products. The construction will create about 7,000 jobs, while 3,000 workers will be signed on when production starts.

The two fabs planned for Magdeburg will also produce chips for other customers under its Intel Foundry Services subsidiary.

Intel will double the existing manufacturing capacity in Ireland and make it capable of its upcoming Intel 4 node manufacturing. The expansion brings Intel’s investment in Ireland up to €30 billion.

This is coming after Intel announced another massive $20 billion to expand its Arizona plant and a new $20 billion production site in Ohio, which would become the largest silicon manufacturing location in the world.

In its press release, Intel states, “R&D and design are critical to advance leading-edge semiconductor manufacturing. Europe is home to world-class universities, research institutes, and leading chip designers and suppliers. Supporting this innovation cluster with additional investments in R&D and linking them to Intel’s leading-edge manufacturing plans will boost the circle of innovation in Europe, including providing small and medium enterprises (SMEs) better access to cutting-edge technologies.

“These investments will further strengthen Intel’s long-standing relationships with European research institutes across the continent, including IMEC in Belgium, Technical University Delft in the Netherlands, CEA-Leti in France, and the Fraunhofer Institutes in Germany. Intel is also developing exciting partnerships in Italy with Leonardo, INFN, and CINECA to explore advanced new solutions in HPC, memory, software programming models, security and cloud.”

Pat Gelsinger, CEO of Intel, said: “Our planned investments are a major step both for Intel and for Europe. 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 Europe’s R&D innovation and bring leading-edge manufacturing to the region for the benefit of our customers and partners around the world. We are committed to playing an essential role in shaping Europe’s digital future for decades to come.”

The investments can’t come at a better time as the global manufacturing sector faces a shortage of chips. The scarcity has dealt a blow to multiple industries, from gaming consoles to smartphones and cars.

Intel’s competitors are also expanding, including TSMC and Samsung, investing inside and outside the US. However, it will be some time before the effects of these investments are felt.

Written by HackerVibes

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