Intel plans to invest more than €30 billion ($33 billion) in Magdeburg, Germany reports Reuters. The deal also includes an agreement of €10 billion ($10.91 billion) in government subsidies for the construction of the plant.the contract was formalized signed on monday. According to Israeli Prime Minister Benjamin Netanyahu, Intel will not only build a new chip factory in Germany, but will also build a new factory in Israel, according to another report. Reuters report.
Intel’s site near Magdeburg, Germany, includes at least two fabs and is expected to cost more than €30 billion, though the total investment in the campus has yet to be determined. Intel’s statement said the first fab will be used to manufacture chips with “more advanced technology than originally planned.” Meanwhile, the company did not specify which node it was talking about, but said the technology belongs to the Angstrom era, which means 18A, 20A, or some other advanced process.
Intel purchased the land needed for the new project in November 2022. Having received the approval of an incentive package by the European Commission, the first facility he expects to be operational within four to five years. Given the timing, the new plant is expected to begin operations in this late decade.
In addition to building an all-new location in Germany, Intel will also expand its factory in Kiryat Gat, Israel. The company will invest $25 billion in building a new factory in Israel, according to Prime Minister Benjamin Netanyahu. The investment will be the largest ever international financial aid to the country.
The Kiryat Gat plant will begin operations in 2027 and will continue until at least 2035, with Israel’s Ministry of Finance expecting it to create thousands of jobs. As part of the deal, Intel’s tax rate will increase from the current 5% to 7.5%.
In a statement to Reuters, Intel said: “Our intention to expand our manufacturing capacity in Israel reflects our commitment to meeting future manufacturing needs and we thank the Government of Israel for its continued support. It is stated that
