At a Glance:
- Intel may build the new multi-billion European chip factory at Magdeburg.
- Intel could wait for the introduction of new legislation before deciding on the European location.
- The new chip-making plant will be in the Eulenberg industrial area in the southwest.
Intel might be choosing Magdeburg as the site for a new multi-billion European chip factory. The decision will be made public on March 4.
Intel had previously announced that it will be investing $95 billion in Europe over the next decade and will be announcing two major European chip fabrication plants by the end of 2021.
Intel new chip factory in Magdeburg
Intel has always kept Germany at the top list of potential locations with the local governments of Penzing in Bavaria and Magdeburg and Dresden in Eastern Germany trying to attract the U.S. Company in German markets.
The analysts have also commented on the new European chip factory. They said that Intel could wait for the introduction of new legislation before deciding on the European location. The continent is already subsidizing the local development for large chip factories. Due to the European Chips Act, the mission is to reduce the continent’s dependency on Asian countries for the supply of advanced semiconductors.
Patrick Gelsinger, Chief Executive of Intel, had traveled to Europe last year. Given the factors like government subsidies, stability, and availability of skilled labor might have been the reason behind the CEO considering Germany to be the new plant.
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Germany’s multibillion chip factory
Germany is already home to several renowned and biggest automakers. However, the current global crisis of chip shortage has also badly impacted the biggest automakers around the world.
Magdeburg is a small city in East Germany and the capital of Saxony-Anhalt state. The city hosts Otto von Guericke University and the new plant will be in the Eulenberg industrial area in the southwest.
There are no official announcements on when the production might start. Intel announced plans to build a $20 billion U.S. chip factory in Ohio and might consider France and Italy as the new locations in Europe as Intel plans to build a design center and packaging plant.
