Today we know that Germany will allocate Intel 6.8 billion euros in subsidies to help finance part of the wafer factory it will build in the city of Magdeburg, which will become the company’s second wafer factory on European soil (the first is in Ireland). This main factory will be accompanied two additional factories.
Local media are already reporting that they have been successful so far in booking approximately 2,700 million euros for the 2022 federal government budget and that the remaining money will be allocated in the 2023 and 2024 budgets. While that might seem like a lot of money, it’s actually a lot when you consider that Intel’s investment in this city will exceed 33,000 million euros, for which the German government will contribute about a fifth of the total investment necessary to complete the project.
The US chipmaker will include an R&D and design center in France, as well as chip manufacturing, foundry and packaging services operations in Italy, Poland and Spain.
Germany’s Investment in Intel Means Many Jobs
In the first phase of the project, Intel’s massive site in the city of Magdeburg will consist of two neighboring factories occupying the space of two world-class soccer fields. The chipmaker projects the campus will create 3,000 permanent jobs of high technology for the company, as well as tens of thousands of additional jobs among suppliers and partners in the region.
Construction of the new factories in Magdeburg should start in the first half of 2023and factories should start making chips using state-of-the-art manufacturing processes in 2027. Interestingly, this news comes shortly after TSMC said there were no concrete plans to build a factory on European soil as it had “relatively fewer customers“, and it is clear that with these investments from Intel, it is very likely that it has already found itself without the possibility of doing future business in the region.