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Intel to Invest Additional Billions in Eastern Germany
The US chipmaking giant says it’s prepared to invest an additional EUR 13 billion euros in its flagship German site.
Jun 19, 2023
Intel has signed a revised letter of intent with the German government that increases its planned investment in semiconductor facilities, or megafabs, in the eastern German city of Magdeburg to more than EUR 30 billion. Last year, Intel chose Magdeburg as the main site for its huge European expansion and promised to invest at least EUR 17 billion euros there.
Amidst a meeting in Berlin, Intel CEO Pat Gelsinger said the company would build a “Silicon Junction” near the eastern German city, the aim being to create “a capacity corridor from wafers to complete packaged products that is unrivaled.”
German Chancellor Olaf Scholz called the agreement “an important step for Germany as a high-tech production location – and for our resilience.”
Construction of the new facility is expected to commence in 2026 or 2027 and requires the European Commission’s approval of the incentive package. Both Germany and EU have made it a priority to attract high-tech companies and industry. “The size of Intel’s reaffirmed and increased commitment to its expansion in Magdeburg speaks louder than words about Germany’s appeal as a high-tech business location,” says Germany Trade & Invest CEO Robert Hermann. “Diversification and bringing supply back closer to demand are both global trends right now. And there’s simply no getting around Germany for companies who want to maximize their business opportunities in Europe.”
“Germany has world-renowned universities and technical training programs and a tradition of innovation and engineering that have made it home to some of the world’s most successful and admired companies, including many of Intel’s most important customers and partners,” said Intel in a statement.
