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| Intel will spend 17 billion euros to build a factory in Germany |
Intel Corp. announced major new investments in its European manufacturing base, construction of a new €17 billion semiconductor mega site in Germany, and expansion of its existing €12 billion plant in Germany.
The company has also set up a new research, development and design center in France. It plans to invest in manufacturing and research elsewhere in Ireland, Italy, Poland and Spain.
Intel also plans to invest more than 33 billion euros in the first wave of European R&D and manufacturing, as part of a total of 80 billion euros to invest in the European Union over the next decade.
The new German plant consists of two semiconductor and microchip production sites in Magdeburg. Construction is scheduled to begin in the first half of 2023, ahead of expected production in 2027.
The site produces the next generation of Intel products from the Angstrom era (including the Intel 20A and Intel 18A nodes the company mentioned last year).
The company said the new site will also help the company produce chips for its customers.
Intel said the German project will create 7,000 new jobs for Intel in addition to 3,000 long-term jobs when production begins within a few years.
Intel invests in chips in six European countries
Meanwhile, the expansion into Ireland aims to double Intel's manufacturing footprint at the company's existing facilities and bring the next Intel Node 4 to European manufacturing facilities.
The European investment is part of the IDM 2.0 strategy that CEO Pat Gelsinger proposed when he acquired the company a year ago.
The company has since announced a massive investment of $20 billion at its current location in Arizona. He also announced a $20 billion investment in a new plant in Ohio. The company says the new Ohio plant will be the largest silicon manufacturing facility in the world.
Investment in manufacturing facilities is an important issue in the silicon industry. Semiconductor shortages continue to wreak havoc on supply chains. It also raises questions about product availability and pricing for everything from gaming consoles to cars.
Not only did Intel, Samsung and TSMC announce big plans to build new chip production facilities internationally and in the USA.
Manufacturing capabilities can help solve supply problems. However, it may take some time before you feel the impact of these new investments. This is because building a new plant takes a long time.