Berlin, 20 June, 2023 (GNP): Intel and the German government signed an agreement on Monday under which the US will spend more than 30 billion euros ($33 billion) in Germany to develop two chip-making plants in the eastern city of Magdeburg as part of its expansion push in Europe. Chancellor Olaf Scholz received the agreement as the biggest foreign investment in Germany.
“This is a historic moment for Intel and Germany,” said Pat Gelsinger, CEO of Intel. “We’re grateful to the German federal government, Chancellor Olaf Scholz and the government of Saxony-Anhalt for their partnership and shared commitment to fulfilling the vision of a vibrant, sustainable, leading-edge semiconductor industry in Germany and the EU,” he stated further.
Moreover, the investment in Germany is part of Intel’s $100 billion investment in manufacturing capacity in Europe over the next decade. The company is also investing in new research and development facilities in Europe, and it is working to strengthen its supply chain in the region.
“Intel’s investment would raise semiconductor production in Germany to a new level and is an important contribution to growing European sovereignty,” said Deputy Chancellor Robert Habeck. “It will help to secure our supply chains and create jobs in the future,” he added.
The first of the two new facilities in Magdeburg is expected to start production in 2027, and the second in 2028. The facilities will produce chips using Intel’s most advanced manufacturing technology.
Intel’s interest in Germany is a critical lift for the European semiconductor industry. The organization is the world’s biggest semiconductor producer, and its speculation will assist with guaranteeing that Europe has areas of strength for a stockpile of chips.
Also, the investment is a major win for the German government. The government has been working to attract foreign investment in the semiconductor industry, and Intel’s investment is a major coup.
Furthermore, the new offices in Magdeburg will be a significant monetary lift for the district. They will create a huge number of occupations and will draw different organizations to the area.