Intel Invests $ 36 Billion in New European Computer Chip Factory-Reuters

The European plan includes the construction of two new factories in Magdeburg, Germany, located between Berlin and Hanover. Intel is also doubling its existing manufacturing facility in Leixlip, Ireland, and is in talks with Italian authorities on the potential of its manufacturing site.

On the research side, Intel plans to set up a new European R & D center near the Plateau de Saclay in France, in the southwestern suburbs of Paris. The company also said it would set up a joint lab with the Barcelona Supercomputing Center in Spain to expand its existing research facility in Gdansk, Poland.

“We are committed to playing a key role in shaping the digital future of Europe over the next few decades,” Intel CEO Pat Gelsinger said in a statement. I am saying.

Increasing tensions between the United States and China are also driving investment efforts as Western governments are concerned about the safety of computer chip supplies from Asia.

About 75% of chip production is done in East Asia, and more than 90% of cutting-edge chips are made in Taiwan. Taiwan is an island that threatens to forcibly rob China on a regular basis if the democratically elected Taiwanese government declares legal independence.

Intel said in a statement that investing in Europe addresses “the need for a more balanced and resilient supply chain.”

Taiwan, South Korea and China have become major chip makers by providing large subsidies for expensive and complex manufacturing. Installing a high-tech facility can require over $ 10 billion in investment and years of construction.

Both the United States and the European Union aim to provide chip makers with billions of new subsidies, although US subsidies have been postponed by Congress.

Both the Senate and the House of Representatives have passed a bill allocating $ 52 billion to subsidize the construction of a US chip factory, but the bill has not yet been integrated into the conference process. In the Senate, majority leader Charles E. Schumer (DN.Y.) and his Republican leader Mitch McConnell (Ky.) Will begin the process before the April recess. I want. A condition of anonymity for discussing internal issues.

Intel currently employs about 10,000 people in Europe. According to Intel, the new investment will create 3,000 high-tech jobs in Germany, 1,000 in France and 1,500 in Italy, as well as thousands of jobs at construction companies and suppliers.

“Germany welcomes the large investment planned by Intel and the company,” German Chancellor Olaf Scholz said in a statement Tuesday. “The first such manufacturing site in the EU will help rebalance the world’s silicon capacity and build a more resilient supply chain. »»

Intel’s new investment in Europe and Ohio will take years to build the factory and will not help quickly alleviate the shortage of computer chips. According to Intel, construction of the German site will begin in the first half of 2023 and production will begin in 2027.

The company said its initial investment plan in Europe will total € 33 billion ($ 36 billion), but if the company chooses to continue expanding, it could reach € 80 billion over the next decade.

Marianna Sotomayor contributed to this report.