Intel Corporation announced on Tuesday its plans to invest over $36.00 billion to boost chipmaking across the European Union.
Accordingly, the company stated that it picked Germany for a large complex. Furthermore, it emphasized that the facilities will use the most advanced chip manufacturing technology.
The auto industry is likely to be a prime customer for processors that are two nanometers or less in width. Then, the firm anticipated the construction to begin in the first half of 2023.
Correspondingly, Intel projected the production to come online in 2027, providing no regulatory conflicts.
The business cited that Germany is ideal for establishing the new Silicon Junction mega-site.
It explained that the country offered one of the best talents and the existing ecosystem of suppliers and customers.
Eventually, Intel will invest $18.65 billion in Berlin facilities. This venture would create 7,000 construction jobs throughout the build and 3,000 permanent positions at the firm.
The American technology company looked forward to becoming more self-reliant regarding semiconductors.
Chipmakers now look to establish more factories to make advanced chips for premium smartphones.
Meanwhile, the European region scrambles to boost output and fix a supply crisis that has hit the car industry.
For instance, automaker Volkswagen highlighted the pain caused by chip constraints. It noted that it sold 2.00 million fewer vehicles than planned last year due to the shortage.
Moreover, Intel’s announcement came after the European Commission handed in plans to encourage chip manufacturing in the region.
Authorities proposed new legislation to ease state aid rules for semiconductor factories. They aim to enable $17.00 billion in additional public and private investment.
Intel’s move beyond Germany
In addition, Intel pledged to create a new R&D and design hub in France. Consequently, it will also invest in manufacturing and foundry services in Ireland, Italy, Poland, and Spain.
Then, experts expected a $14.46 billion investment in doubling the manufacturing space of a facility in Leixlip, Ireland.
Intel mentioned that it will have spent over $32.93 billion in Ireland when the expansion is complete.
The firm said it is in negotiations about a new $4.94 billion back-end manufacturing facility in Italy.
Notably, Intel is one of three leading chipmakers along with Asian players TSMC and Samsung.
It said the investments are part of a broader package that will see the company invest as much as $87.86 billion in Europe over the next decade.