Intel to build US$33 billion plant in Germany with US$11 billion in subsidies as it seeks to regain chip dominance
- Intel sealed the agreement for a plant in Magdeburg on Monday at an event attended by CEO Pat Gelsinger and German Chancellor Olaf Scholz
- Intel bought the land in late 2022 and initially agreed to build the facility with €6.8 billion in aid but postponed construction amid economic headwinds.
Intel confirmed the accord Monday without providing a specific amount for the financial aid. It said it plans to invest around €30 billion in the “leading-edge wafer fabrication site” in Magdeburg, which Chancellor Olaf Scholz said represents “the single largest foreign direct investment in German history”.
Together with Intel’s facilities in Ireland and Poland, the new site – which will consist of two fabs and be called “Silicon Junction” – will create an end-to-end semiconductor manufacturing infrastructure, supporting the European Union’s push for a more resilient supply chain, Intel said in a statement.
The first facility is expected to enter production in four to five years following European Commission approval, it added.
“Today’s agreement is an important step for Germany as a hi-tech production location – and for our resilience,” said Scholz, who attended a signing ceremony for the deal at the chancellery in Berlin together with Intel chief executive officer Pat Gelsinger.