Investment plan

Intel Announces Multi-Billion Investment Plan for Europe | News | DW

US tech giant Intel has announced the first phase of plans to invest 80 billion euros ($87.9 billion) in Europe over the next 10 years. The investment focuses on the research and production of semiconductor chips, which are crucial components in computers, smartphones and other electronic devices.

Germany to become a chip manufacturing ‘megasite’

The company said the German city of Magdeburg had been identified as the site of a new hub to develop “two first-of-its-kind semiconductors”. Germany has been described as “the perfect place” for a new hub, with Intel calling it a “silicon junction” for chipmaking.

The company said the project would create 7,000 construction jobs and 3,000 permanent high-tech jobs.

He said there would also be tens of thousands of jobs with suppliers and partners. The company would also expand its facilities in France, Ireland, Italy, Poland and Spain.

In February, the European Union unveiled its new chip law, in which the bloc said it would spend some 42 billion euros ($48 billion) in public and private funds to become a producer of microchips, with the aim of breaking dependence on Asian markets.

Pat Gelsinger, CEO of Intel, said, “Our planned investments are a major milestone for both Intel and Europe. The European Chip Act will allow private companies and governments to work together to significantly advance Europe’s position in the semiconductor industry.

EU seeks self-sufficiency in semiconductors

The EU is working to strengthen its economic autonomy in the critical semiconductor sector, which has suffered from shortages in the supply chain for more than a year.

Microchips, otherwise known as semiconductors, are manufactured primarily in Asia. Reliance on a limited number of chipmakers in Asia has raised concerns in the West as massive shortages have crippled assembly lines.

European Commission President Ursula von der Leyen welcomed the announcement, calling it “the first major achievement under EU chip law. This is just the beginning,” said von der Leyen in a tweet, adding: “we are open for business”.

ko/aw (AFP, dpa)