Intel To Spend EUR 30 Bln In German For Semiconductor Facilities

(RTTNews) - Intel (INTC) and the German federal government have signed a revised letter of intent for Intel's planned leading-edge wafer fabrication site in Magdeburg, the capital of Saxony-Anhalt state in Germany.

The agreement encompasses Intel's expanded investment in the site, now expected to be more than 30 billion euros for two first-of-a-kind semiconductor facilities in Europe, along with increased government support that includes incentives, reflecting the expanded scope and change in economic conditions since the site was first announced.

Intel acquired the land for the project in November 2022, and the first facility is expected to enter production in four to five years following the European Commission's approval of the incentive package. Given the current timeline and scale of the investment, Intel plans to deploy more advanced Angstrom-era technology in the facilities than originally envisioned. The Magdeburg site will serve Intel

"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 Wroclaw, Poland, and the Ireland sites we already operate at scale, this creates a capacity corridor from wafers to complete packaged products that is unrivaled and a major step toward a balanced and resilient supply chain for Europe," said Intel CEO Pat Gelsinger. "We're grateful to the German federal government, Chancellor Olaf Scholz and the government of Saxony-Anhalt for their partnership and shared commitment to fulfilling the vision of a vibrant, sustainable, leading-edge semiconductor industry in Germany and the EU."