 "Intel Core")
Intel will invest more than €30 billion ($33 billion) in Germany as part of its expansion push in Europe, the US company said marking the biggest investment by a foreign company in Europe’s top economy.
The deal to build two leading-edge semiconductor facilities in the eastern city of Magdeburg involves €10 billion in German subsidies, a source said.
The agreement includes what Intel said was increased government support including incentives, reflecting the expanded scope of the project since it was first announced in March 2022.
Intel CEO Pat Gelsinger said he was grateful to the German government and the state of Saxony-Anhalt, where Magdeburg is located, for “fulfilling the vision of a vibrant, sustainable, leading-edge semiconductor industry in Germany and the EU”.
Under Gelsinger, Intel has been investing billions in building factories across three continents to restore its dominance in chipmaking and better compete with rivals AMD , Nvidia, and Samsung.
The deal in Germany would be Intel’s third big investment in four days.
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Globally, semiconductor manufacturing is expected to become a trillion-dollar industry by 2030, expanding from $600 billion in 2021, according to McKinsey.
Both the US and Europe are trying to lure big industrial players via a mix of state subsidies and favourable legislation, with Germany concerned about losing appeal as a place to invest. Berlin is investing billions of euros in subsidies to lure tech companies, amidst growing alarm over supply chain fragility and dependence on South Korea and Taiwan for chips.
“Today’s agreement is an important step for Germany as a high-tech production location and for our resilience,” Chancellor Olaf Scholz said on Monday.
