Intel to Invest Nearly $90B on Europe’s Semiconductor Industry

Intel plans to invest up to €80 billion ($89 billion) over the next decade into supporting Europe’s chipmaking industry, as part of a wider push to make the region self-reliant in making semiconductors.

The U.S.-based chipmaker’s plans include building two new factories in Germany that will cost some €17 billion ($19 billion). It expects the construction of the site in the city of Magdeburg, which it will name “Silicon Junction”, to begin next year and start operations in 2027.

“This broad initiative will boost Europe’s R&D innovation and bring leading-edge manufacturing to the region,” Intel’s CEO Pat Gelsinger said in a statement.

Intel also plans to create a new R&D and design hub in France, and invest in R&D, manufacturing and foundry services in Ireland, Italy, Poland and Spain, the statement read.

The venture is expected to create about 5,500 jobs at the company, plus thousands more in construction and at suppliers.

The European Commission has been ramping up efforts to secure chip supplies after tech companies and carmakers struggled from a severe shortage over the past year as a result of pandemic-induced supply chain problems. 

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