Intel Announces 80 Billion euro Investment Plan to Set up Mega-Fab in Germany: Will Produce 2nm and 1.8nm Chips

Intel has announced plans to set up a major foundry in Magdeburg, Germany with an initial investment of 17 billion euros, creating 7,000 jobs over the course of the construction, and 3,000 permanent engineering and semiconductor posts at Intel thereafter. This will also result in the creation of thousands of additional jobs across suppliers and partners. The chipmaker plans to refer to the new production site as the Silicon Junction. This Silicon Junction will serve as the connection point for other centers of innovation and manufacturing across the country and region.

Planning will start immediately, and construction at the site is expected to begin in the first half of 2023. The advanced foundry will come online in 2027 after approval from the European Commission. The new fabs are going to produce the most advanced wafers alongside their Ohio and Arizona counterparts. We’re talking about the 2nm and 1.8nm process nodes which Intel refers to as the Angstrom-era transistor technologies.

Our planned investments are a major step both for Intel and for Europe. The EU Chips Act will empower private companies and governments to work together to drastically advance Europe’s position in the semiconductor sector. This broad initiative will boost Europe’s R&D innovation and bring leading-edge manufacturing to the region for the benefit of our customers and partners around the world. We are committed to playing an essential role in shaping Europe’s digital future for decades to come.

Pat Gelsinger, Intel CEO

Intel is also expanding its Ireland foundry, spending an additional 12 billion euros to begin the mass production of 4nm chips in Europe, doubling the overall output of the process node. Overall, this totals Intel’s total investment in Ireland to more than 30 billion euros.

Intel and Italy have also started negotiations to set up a state-of-the-art back-end manufacturing facility with an initial investment of 4.5 billion euros. This factory would create approximately 1,500 engineering jobs and as many as 3,500 jobs across suppliers and other partners. The facility is slated to go online between 2025 and 2027.

Areej Syed

Processors, PC gaming, and the past. I have written about computer hardware for over seven years with over 5000 published articles. I started during engineering college and haven't stopped since. On the side, I play RPGs like Baldur's Gate, Dragon Age, Mass Effect, Divinity, and Fallout. Contact: areejs12@hardwaretimes.com.
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