Intel is spending tens of billions of dollars on new factories in Arizona and Oregon, but the company’s ambitions certainly extend beyond the United States. Intend to invest more than a billion dollars.
Near Intel’s new “Silicon Junction” site Magdeburg, Germany, It will serve two fabs and will have an initial cost of €30 billion. The manufacturing facility will produce the chips at an “Angstrom-era” node, but Intel has not yet disclosed which node. The only thing the company has revealed so far is that the production node will be more advanced than Intel originally envisioned for the factory. This could refer to more advanced nodes than Intel 20A and Intel 18A. The assets needed for this upcoming project have been purchased by Intel in November 2022. The first fab, Intel claims, will be operational within four to five years after the European Union gives the incentive package the go-ahead.
Intel has revealed initial plans to build a chip factory near Magdeburg, Germany, in early 2022. At the time, the construction cost of the plant was estimated at $18.7 billion, and the German government agreed to provide $7.2 billion in state aid. However, Intel later chose to expand the scope of the project, intending to build a larger and more technologically advanced factory with a total investment of $31.675 billion (€30 billion). The expansion required additional subsidies and protracted negotiations between Intel and German authorities. Finally, an amended agreement was reached this week to give Intel €10 billion ($10.91 billion) in government aid to build a new factory.
In addition to developing a brand new factory complex in Germany, Intel has plans to expand its site into Germany. Kiryat Gat, Israel. Israeli Prime Minister Benjamin Netanyahu has reported that the CPU giant will invest around $25 billion in the construction and equipment of this new Israeli factory. This represents the largest foreign investment Israel has ever received.
The new Kiryat Gat facility is scheduled to begin production in 2027 and will operate until at least 2035, which should create thousands of high-paying jobs, according to the Israeli Finance Ministry. Under the terms of the deal, Intel’s tax rate will increase from the current 5% to 7.5%.
Building the new fab will significantly increase the manufacturing capacity available for Intel’s own products and chips designed by Intel Foundry Services customers. In addition to its advanced chip production facilities in Germany and Ireland, the company also plans to build a new advanced packaging facility nearby. Wroclaw, PolandThis would allow Intel to manufacture and package its chips entirely in Europe, rather than bringing them to Asia for packaging.
The new advanced packaging facility near Wroclaw, Poland is expected to meet Intel’s significant need for assembly and test capabilities by 2027. The company plans to invest up to $4.6 billion in the project for future expansion. When completed, it will employ about 2,000 people.
