Intel Plans to Spend €80 Billion on Chip Manufacturing in Europe
Intel plans on spending up to €80 billion ($87.8 billion) over the next decade to build new chip manufacturing sites across Europe.
The goal is to create a “next-generation chip ecosystem” for the European Union to help address the ongoing demand for semiconductors, Intel CEO Pat Gelsinger said today.
"With this landmark investment, Intel plans to bring its most advanced technology to Europe,” the company added.
The manufacturing expansion comes as Intel works to become a leading chip foundry to rival Taiwan’s TSMC and South Korea’s Samsung. This means Intel wants to build custom processors for third-party clients, such as smartphone vendors, server producers, and auto makers.
The first phase of Intel’s plan calls for spending €17 billion in Magdeburg, Germany, to build two "first-of-their-kind semiconductor fabs," which will be designed to manufacture the company’s most cutting-edge computer processors in the Angstrom-era nodes (2-nanometers and below).
According to Intel, “planning will start immediately, with construction expected to begin in the first half of 2023 and production planned to come online in 2027, pending European Commission approval.”
Another €12 billion will be spent to expand Intel's existing manufacturing facility in Ireland, which is currently its only chip fab on the continent. The site is being upgraded to bring the Intel 4 process node, previously known as the 7nm process, to Europe for its launch in 2023.
The initial investment in the EU totals over €33 billion, which will include a back-end manufacturing facility in Italy. In addition, the company is working to establish new technology sites in Poland and Spain. In France, Intel also plans on setting up a European foundry design center,
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