Intel announces €80 billion investment plan to create mega-factory in Germany: will produce 2nm and 1.8nm chips
Intel has announced plans to establish a large foundry in Magdeburg, Germany, with a initial investment of 17 billion euros, creating 7,000 jobs during construction, and 3,000 permanent engineering and semiconductor positions at Intel afterward. It will also mean the creation of thousands of additional jobs at suppliers and partners. The chipmaker plans to designate the new production site as the silicon junction. This silicon junction will serve as a connection point for other innovation and manufacturing centers across the country and region.
Planning will begin immediately and construction at the site is expected to begin in the first half of 2023. The advanced smelter will be commissioned in 2027 following approval from the European Commission. The new fabs will produce the most advanced wafers alongside their Ohio and Arizona counterparts. We talk about the 2nm and 1.8nm process nodes which Intel calls Angstrom-era transistor technologies.
Our planned investments are a major milestone for both Intel and Europe. The European Chip Act will allow private companies and governments to work together to significantly advance Europe’s position in the semiconductor industry. This vast initiative will drive R&D innovation in Europe and bring state-of-the-art manufacturing to the region for the benefit of our customers and partners around the world. We are committed to playing a key role in shaping Europe’s digital future for decades to come.
Pat Gelsinger, CEO of Intel
Intel is also expanding its Irish foundry, spending extra budget €12 billion to launch mass production of 4nm chips in Europe, doubling global production of the process node. Overall, this brings Intel’s total investment in Ireland to over €30 billion.
Intel and Italy have also started negotiations to set up a state-of-the-art back-end manufacturing plant with an initial investment of 4.5 billion euros. This plant would create approximately 1,500 engineering jobs and up to 3,500 jobs with suppliers and other partners. The facility is expected to come online between 2025 and 2027.