May 19, 2022

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Intel is investing at least $19 billion to build a new chip factory in Germany

Intel is investing at least $19 billion to build a new chip factory in Germany

Mr. Gelsinger argued that government subsidies are necessary to bring the costs of building factories in line with the costs of setting up factories in Asia. He has lobbied officials in the US and Europe about parallel support packages that could include grants to set up chip factories, suggesting that government support could determine the extent and speed of Intel’s expansion in both regions.

Meanwhile, Mr. Gelsinger and other Intel officials have held talks with officials in at least seven countries in Europe about a possible new site. Intel now has plants in Ireland and Israel, as well as Arizona, Oregon, and New Mexico.

Germany appeared to be a strong candidate, in part due to the concentration of automakers who have become major customers of chipmakers. Mr Gelsinger spoke at an auto industry trade fair in September in Munich, where he highlighted driver assistance technology from Intel’s Mobileye unit and posted a photo with then-Chancellor Angela Merkel.

The country is no stranger to chip manufacturing. One of the main production centers is Dresden, where Infineon, GlobalFoundries and Bosch operate semiconductor plants. Magdeburg, in the state of Saxony-Anhalt, is located about 150 miles northwest of Dresden and 100 miles west of Berlin.

“Two Intel’s semiconductor plants in Magdeburg represent an important and powerful driver of the economy in difficult times, and a central shift for Europe’s digital supremacy,” said Robert Habeck, German Economy Minister.

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In addition to the German plant, Intel said it will spend an additional 12 billion euros to double its manufacturing area in L’Exlip, a town west of Dublin. In Italy, the company said it had entered into negotiations to build an advanced wafer packaging and testing plant, with a potential investment of 4.5 billion euros and about 1,500 jobs.

In France, Intel said it will build a research and development center, creating 1,000 jobs, which will focus on areas that include high-performance computing. In Poland, the company is expanding the laboratory space.