Image courtesy of Intel
Intel New Fab In Magdeburg Germany

Intel Announces Plans to Expand European Chip Production

March 15, 2022
Up to €80 billion will be invested in six countries.

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Intel today announced its plans for expanding chip production in Europe, up to an $88 billion (€80 billion) investment over the next decade to build new facilities in Germany, France, Ireland, Italy, Poland and Spain, to support the European Chips Act goal of locating 20% of the world’s microchip production in Europe by 2030.

In the first phase of the expansion plan, Intel will break ground in the first half of 2023 on the “silicon junction,” two new fabs in Magdeburg, Germany, with production to begin in 2027 pending European Commission approval, for a total investment of $19 billion (€17 billion). The project is expected to create 7,000 construction jobs during the build, 3,000 permanent positions at Intel, and tens of thousands of jobs across suppliers and partners.

Intel plans to build in France its main European foundry design center, as well as a European R&D hub around Plateau de Saclay, with a focus at the facility on high performance computing and artificial intelligence design capabilities. Intel expects this to create 1,000 new positions at Intel and targets the end of 2024 for France becoming Intel’s European headquarters for high performance computing and AI design.

Intel’s expansion project in Leixlip, Ireland will continue with another $13 billion (€12 billion) worth of investments, doubling current manufacturing space and bringing total investment in Ireland to $33 billion (€30 billion).

Negotiations have begun to construct a back-end manufacturing facility in Italy, with an investment up to $4.9 billion (€4.5 billion) and with operations planned to begin between 2025 and 2027. Intel expects this to create 1500 Intel jobs and 3,500 jobs across suppliers and partners. This move is intended to compliment Intel’s recent acquisition of Tower Semiconductor and Tower’s partnership with STMicroelectronic’s fab in Agrate Brianza, Italy. Intel also announced the development of new partnerships with Leonardo, INFN and CINECA.

Lab space in Gdansk, Poland will be increased by 50%, with the expansion expected to complete in 2023. The new lab capacity will support a focus on developing solutions for deep neural networks, audio, graphics, data centers and cloud computing.

Intel also plans to build joint labs in Barcelona, Spain with the Barcelona Supercomputing Center, to develop zettascale architecture technology.

In addition, Intel announced that it will power all new European sites with 100% renewable energy and zero total landfill waste, and work toward meeting net positive water use in keeping with Intel’s 2030 sustainability goals.

Intel's announcement of its European expansion plans comes on the heels of its recent announcement concerning its $20 billion investment in a new fab site outside of Columbus, Ohio.

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