Dubbed Silicon Junction, the wafer fabrication site is projected to serve as the connection point for other centres of innovation and manufacturing across the country and region as well as cater to Intel products and Intel Foundry Services customers
Intel announced an increased investment of €30bn in its German fab mega-site. (Credit: Intel Corporation)
Intel has signed a revised letter of intent with the German government to increase its investment to over €30bn to develop a wafer fabrication site in Magdeburg, Germany.
In this regard, the American semiconductor company will build two chip manufacturing facilities in the capital of the Saxony-Anhalt state to expand its production capacity in Europe.
Dubbed Silicon Junction, the wafer fabrication site is projected to serve as the connection point for other centres of innovation and manufacturing across the country and region.
It will cater to Intel products and Intel Foundry Services customers, said the semiconductor company.
In March 2022, Intel announced an initial investment of €17bn towards the Magdeburg semiconductor fab mega-site.
The new German fabs are anticipated to manufacture chips using the company’s more advanced Angstrom-era technologies.
Intel CEO Pat Gelsinger said: “Building the ‘Silicon Junction’ in Magdeburg is a critical part of our strategy for Intel’s growth.
“Combined with last week’s announcement of our investment in Wrocław, Poland, and the Ireland sites we already operate at scale, this creates a capacity corridor from wafers to complete packaged products that is unrivalled and a major step toward a balanced and resilient supply chain for Europe.”
The Silicon Junction is anticipated to generate 7,000 construction jobs over the course of the initial phase of the build.
Furthermore, the fab mega-site will create about 3,000 permanent high-tech jobs at Intel as well as tens of thousands of additional jobs across the industry ecosystem.
German Chancellor Olaf Scholz said: “Intel’s semiconductor production in Magdeburg is the single largest foreign direct investment in German history. With this investment, we are catching up technologically with the world’s best and expanding our own capacities for the ecosystem development and production of microchips.”
The American company secured the land for the project in November 2022.
Intel aims to commence production at the first facility in four to five years after the European Commission’s approval of the incentive package.