The tech massive mentioned on Tuesday that it is going to spend an preliminary €17 billion ($19 billion) to create two new chip factories in Germany. Building at the website online in northeastern town of Magdeburg — which it is going to title “Silicon Junction” — is anticipated to start subsequent yr and get started operations in 2027.
“This wide initiative will spice up Europe’s R&D innovation and convey modern production to the area,” Intel’s CEO Pat Gelsinger mentioned in a press free up.
The corporate plans to pour cash into each a part of the chip provide chain — together with analysis, production and packaging — with investments additionally going to France, Eire, Italy, Poland and Spain.
With its preliminary wave of funding of greater than 33 billion euros ($36 billion), Intel expects to create about 5,500 jobs on the corporate, plus hundreds extra in development and at providers and companions.
The brand new factories will ship chips the usage of Intel’s maximum complicated transistor applied sciences to offer foundry consumers in addition to its personal merchandise.
Germany’s Volkswagen mentioned in October that the chip crunch had helped shave 12% off its third-quarter earnings. That very same quarter, Stellantis, the maker of a couple of automotive manufacturers together with Fiat and Citroën, mentioned it produced about 600,000 fewer automobiles year-over-year because of the dearth.
The Ecu Union these days accounts for 10% of the worldwide chip marketplace, however may just constitute 20% via 2030 if the Act is followed, the Fee mentioned in its proposals.
“The EU Chips Act will empower non-public corporations and governments to paintings in combination to vastly advance Europe’s place within the semiconductor sector,” Gelsinger mentioned.
Intel these days employs round 10,000 folks all over the Ecu Union.
