Investing in billions
It appears that Intel is planning to set up chip factories in Saxony-Anhalt
03/14/2022 at 4:19 pm
Despite the current chip crisis, Intel is well on its way to expansion. The American group wants to invest billions in Europe. The business will also be built in Magdeburg. The chip maker wants to announce the exact plans soon.
American chip company Intel will settle in Magdeburg. According to informed sources, the capital of Saxony Anhalt has been awarded a contract to build a multi-billion dollar chip factory, outperforming the city of Dresden and others. You are waving a large part of the total of up to 80 billion euros that Intel, according to previous information, wants to invest in Europe. In addition to Germany, France and Italy, it is likely that new Intel sites in Europe will also be considered – namely, it is a design center and an assembly plant.
The US company plans to announce its additional plans for Europe tomorrow, Tuesday. Intel announced that company president Pat Gelsinger will talk about investments in both expanding research and development (R&D) activities and expanding manufacturing capabilities. In the invitation to attend the virtual press conference, she said that this should serve the growing demand for modern semiconductor products and promote a strong and diversified supply chain globally.
According to Gelsinger’s earlier statements, the first step is to set up two chip plants in Magdeburg, Handelsblatt reports. Since the cost of setting up a semiconductor plant in Europe is 30-40 percent higher than in Asia, the head of the company is demanding high subsidies. The plant costs about ten billion euros. So the state will have to support Intel with up to four billion euros each.
The US conglomerate is in the middle of the current chip crisis and is on a path of unprecedented expansion. The company is building a massive plant site in the US state of Ohio, with an initial cost of $20 billion, and is buying Israeli chip maker Tower Semiconductor for $5.4 billion. Originally, Intel wanted to announce European positioning decisions as early as 2021, but then waited for the go-ahead for its “European Chip Code” at the beginning of February, which paved the way for billions in public and private source subsidies.
