German Chancellor Olaf Scholz said on Monday that Intel will invest more than 30 billion euros ($33 billion) in developing two chip manufacturing plants in Magdeburg as part of its expansion in Europe. Praised for foreign investment.
The city of Berlin has agreed nearly €10 billion in subsidies with U.S. semiconductor makers, which it initially offered Intel to build two state-of-the-art facilities in the eastern city, according to people familiar with the matter. more than €6.8 billion.
Intel CEO Pat Gelsinger urges the government and the state of Saxony-Anhalt, where Magdeburg is located, to “realize the vision of a vibrant, sustainable and cutting-edge semiconductor industry in Germany and the EU”. said he was grateful for that.
Under Gelsinger, Intel has invested billions of dollars in building factories across three continents to regain its edge in chip manufacturing and better compete with rivals AMD, Nvidia and Samsung.
“Today’s agreement is an important step for Germany as a high-tech production hub and for our country’s resilience,” Scholz said after Monday’s signing.
“With this investment, we are technologically catching up with the best companies in the world and expanding our own capabilities in developing the ecosystem and producing microchips.”
The German acquisition is Intel’s third major investment in four days. The company announced on Friday plans to build a $4.6 billion chip factory in Poland, also a member of the European Union, while Israel announced on Sunday that Intel will invest $25 billion in the country’s factory.
Globally, semiconductor manufacturing is expected to be a $1 trillion industry by 2030, up from $600 billion in 2021, according to McKinsey.
Both the U.S. and Europe are trying to lure big industries with a combination of state subsidies and favorable laws, but Germany fears it will lose its attractiveness as an investment destination.
The Berlin government is investing billions of euros in subsidies to lure tech companies amid growing concerns over fragile supply chains and a reliance on South Korea and Taiwan for chips.
“The reaffirmed scale and further strengthening of Intel’s commitment to expansion in Magdeburg speaks louder than words to Germany’s attractiveness as a location for high-tech businesses,” said the German Trade and Investment Agency. said Robert Hellman, CEO of
Berlin is also in talks with Taiwan’s TSMC and Swedish electric car battery maker Northvolt about setting up production in Germany, and has already persuaded Tesla to build its first European mega-factory in Germany.
https://financialtribune.com/articles/sci-tech/118698/intel-spends-33b-in-landmark-german-expansion Intel Invests $33 Billion in Landmark Expansion in Germany