As part of the European Chips Act, a €43 billion plan to double Europe’s market share in semiconductors, the EU will greatly help Intel. Indeed, the manufacturer of electronic components should soon settle in Europe and collect the sum of 6.8 billion euros, in various forms, to build its factory in Germany.
Intel to set up its chip factory in Magdeburg, Germany by 2027
The “Silicon Junction” project is the one led by Intel in order to settle permanently in Europe. This begins irremediably with the construction of an electronic component manufacturing plant which will be located in Magdeburg, in the Land of Saxony-Anhalt, south-west of Berlin. This huge project should begin in the first half of 2023 for an effective opening in 2027.
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This is what the Intel factory in Magdeburg should look like. Picture: Intel.
The choice of the city of Magdeburg was made for several reasons, as indicated by Mikael Moreau, spokesperson for Intel: “Magdeburg brought together all the key points that Intel was looking for “. ” Intel wanted a very large area, around 400 hectares. He also wanted to secure significant water and electricity needs, renewable if possible. “, specified Max Milbredt, the person in charge for the sector of the electronic chips of Germany Trade and Invest, the German equivalent of Business France, which accompanied the establishment of Intel in Germany.
The responsiveness of Magdeburg’s administrative services is a point that the American firm has not neglected, as is the central place of the city in Europe, which guarantees a good connection with other European cities via transport. But one of the points that has greatly tipped the scales is the financial aspect. Being located in the former GDR, Magdeburg is authorized to pay larger subsidies to investors than in the Lands in the west and south of the country, which are much more industrialized.
The European Union will pay 6.8 billion euros in total to Intel
Of course, the construction of this factory is eagerly awaited in this region since it should lead to the creation of 7,000 temporary jobs (for the construction of the factory) and 3,000 permanent positions (linked to the proper functioning of the factory ). In addition, the arrival of this factory will also create jobs with service providers and local partners of Intel.
To help Intel build its factory, the European Union will pay 6.8 billion euros to the group, including 2.72 billion this year. In total, these various payments should cover nearly 40% of the total construction cost, which would amount to 17 billion euros. Within this new factory, Intel will manufacture chips using its most advanced processes. The firm will also produce chips for independent brands through its Intel Foundry Services program.