Intel, the American multinational corporation, has announced plans to invest over 30 billion euros ($33 billion) in Germany, marking the largest foreign investment in the country’s history. The investment is part of Intel’s expansion push in Europe and will involve the construction of two cutting-edge semiconductor facilities in the city of Magdeburg. The German government will provide 10 billion euros in subsidies for the project.
Intel CEO Pat Gelsinger expressed gratitude to the German government and the state of Saxony-Anhalt for their support in fulfilling the vision of a vibrant and sustainable semiconductor industry in Germany and the European Union. Under Gelsinger’s leadership, Intel has been investing billions in building factories across three continents to regain its dominance in chipmaking and compete with rivals such as AMD, Nvidia, and Samsung.
This investment in Germany is the third major investment announced by Intel in just four days. The company recently unveiled plans for a $4.6 billion chip plant in Poland and a $25 billion factory in Israel. The global semiconductor manufacturing industry is expected to reach a value of one trillion dollars by 2030, up from $600 billion in 2021.
Both the United States and Europe are actively seeking to attract major industrial players through state subsidies and favorable legislation. Germany, in particular, is investing billions of euros in subsidies to lure tech companies and reduce its dependence on South Korea and Taiwan for chips.
The agreement between Intel and Germany is seen as a significant step for the country’s high-tech production capabilities and resilience. Chancellor Olaf Scholz emphasized the importance of the investment in positioning Germany as a leading high-tech production location and expanding its capacities for microchip development and production.
Berlin is also in talks with Taiwan’s TSMC and Sweden’s Northvolt about setting up production in Germany, following the successful establishment of Tesla’s first European gigafactory in the country.
The first facility in Magdeburg is expected to begin operations 4-5 years after the European Commission’s approval of the subsidy package. The project will create around 7,000 construction jobs, 3,000 high-tech jobs at Intel, and tens of thousands of jobs across various industries.
Intel’s investment in Germany is part of its broader strategy to benefit from easier European Commission funding rules and subsidies. The European Union is aiming to reduce its reliance on U.S. and Asian chip supplies.
Intel CEO Gelsinger acknowledged the competitive nature of the industry and the need for Germany to be cost competitive in order to bring back the semiconductor industry that was lost to Asia.
Intel’s shares on the Frankfurt stock exchange rose by 0.4% following the announcement of the investment.
The news article was written by Supantha Mukherjee, a journalist with a special focus on emerging technologies such as AI and 5G. He has been covering various beats, including the financial sector and technology, for Reuters since 2006.
intel investment plan
The German government and Intel are making significant contributions to the semiconductor industry. Intel’s announcement of its plans to invest over 30 billion euros ($33 billion) in Germany is a testament to their commitment to expanding their presence in Europe.
The investment in Germany will involve the construction of two cutting-edge semiconductor facilities in the city of Magdeburg. This signifies Intel’s dedication to staying at the forefront of chipmaking technology. With the support of the German government, who will provide 10 billion euros in subsidies for the project, Intel is poised to make a substantial impact on the country’s semiconductor industry.
Intel CEO Pat Gelsinger expressed his gratitude to the German government and the state of Saxony-Anhalt for their support in realizing the vision of a vibrant and sustainable semiconductor industry in Germany and the European Union. This demonstrates the collaborative efforts between Intel and the German government to foster growth and innovation in the technology sector.
Intel’s investment in Germany is part of a larger expansion push across Europe. Just four days prior to this announcement, Intel unveiled plans for a $4.6 billion chip plant in Poland and a $25 billion factory in Israel. These investments highlight Intel’s determination to reclaim its dominance in chipmaking and compete with industry rivals like AMD, Nvidia, and Samsung.
The global semiconductor manufacturing industry is experiencing significant growth, with expectations to reach a value of one trillion dollars by 2030, up from $600 billion in 2021. Intel’s strategic investments in various countries, including Germany, Poland, and Israel, position the company well to capitalize on this growth and solidify its presence in the industry.
Overall, Intel’s plans to invest over 30 billion euros in Germany signify a major milestone in the country’s history, as it marks the largest foreign investment ever made. This investment is not only a testament to Intel’s commitment to expanding its operations in Europe, but also to the strong collaboration between the company and the German government in fostering technological innovation and economic growth.
This investment by Intel in Germany marks a significant milestone for both the company and the country. It not only demonstrates Intel’s confidence in Germany’s economic potential but also highlights the attractiveness of Germany’s innovative tech market. This historic investment has the potential to drive growth, foster technological advancements, and create a multitude of job opportunities.
This investment by Intel is a huge boost for Germany’s economy and reinforces its importance as a global technology hub. It’s a strong testament to the country’s talented workforce and commitment to innovation. Exciting times ahead for both Intel and Germany!