The new semiconductor fab is part of the €80bn investment to be made in Europe by Intel over the next decade
The world headquarters for Intel in Santa Clara, California. (Credit: Walden Kirsch/Intel Corporation)
Intel has reportedly selected a location in Magdeburg in eastern Germany to construct a new chip factory in Europe.
The American semiconductor major will make an announcement in this regard later this week, reported Reuters, citing an undisclosed person having knowledge of the matter.
Intel is expected to make a multibillion-euro investment to build the new chip factory in Magdeburg.
In September 2021, the company’s CEO Pat Gelsinger disclosed plans of investing up to €80bn over the next decade in Europe to address the growing demand for semiconductor chips.
At that time, it was revealed that Intel had plans to build at least two new semiconductor factories in Europe and set up committed foundry capacity at its Ireland fab.
Locations of the two new chip fabrication facilities to be built in Europe were to be announced by the end of 2021. However, no announcement was made in that connection by Intel.
According to the publication, Germany was a chief contender in the company’s list of potential candidates for the new chip factories in Europe. The local governments of Magdeburg and Dresden in eastern Germany and Penzing in Bavaria are said to have put in efforts to get Intel in investing in their areas.
During Munich’s IAA Mobility 2021 auto show, Gelsinger said that Intel Foundry Services has been actively engaged in discussions with potential customers in Europe, which included automotive manufacturers and their suppliers.
Earlier this month, Intel had signed an agreement to acquire Tower Semiconductor, an Israel-based foundry for analogue semiconductor solutions, for a sum of nearly $5.4bn.