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Manufacturing & Supply Chain

Intel to Invest Over €33 Billion for R&D and Manufacturing in EU With €12 Billion in Ireland

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Intel to Invest Over €33 Billion for R&D and Manufacturing in EU With €12 Billion in Ireland

Intel to Invest Over €33 Billion for R&D and Manufacturing in EU With €12 Billion in Ireland
March 16
11:18 2022
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Intel has announced the first phase of its plans to invest as much as 80 billion euros in the European Union over the next decade along the entire semiconductor value chain – from research and development (R&D) to manufacturing to state-of-the art packaging technologies. The announcement includes plans to invest an initial 17 billion euros into a leading-edge semiconductor fab mega-site in Germany, to create a new R&D and design hub in France, and to invest in R&D, manufacturing and foundry services in Ireland, Italy, Poland and Spain. With this landmark investment, Intel plans to bring its most advanced technology to Europe, creating a next-generation European chip ecosystem and addressing the need for a more balanced and resilient supply chain.

Pat Gelsinger, CEO of Intel, said: “Our planned investments are a major step both for Intel and for Europe. The EU Chips Act will empower private companies and governments to work together to drastically advance Europe’s position in the semiconductor sector. This broad initiative will boost Europe’s R&D innovation and bring leading-edge manufacturing to the region for the benefit of our customers and partners around the world. We are committed to playing an essential role in shaping Europe’s digital future for decades to come.”

Expanding Leading-Edge Manufacturing Capacities for ‘Made in Europe’ Chips

The investment program is centered around balancing the global semiconductor supply chain with a major expansion of Intel’s production capacities in Europe. In the initial phase, Intel plans to develop two first-of-their-kind semiconductor fabs in Magdeburg, Germany, the capital of Saxony-Anhalt. Planning will start immediately, with construction expected to begin in the first half of 2023 and production planned to come online in 2027, pending European Commission approval. The new fabs are expected to deliver chips using Intel’s most advanced, Angstrom-era transistor technologies, serving the needs of both foundry customers and Intel for Europe and globally as part of the company’s IDM (integrated device manufacturer) 2.0 strategy.

Continued Investment in Ireland

Intel is also continuing to invest in its Leixlip, Ireland, expansion project, spending an additional 12 billion euros and doubling the manufacturing space to bring Intel 4 process technology to Europe and expand foundry services. Once complete, this expansion will bring Intel’s total investment in Ireland to more than 30 billion euros.

“Investing a further €12 billion, on top of the €5 billion previously announced on its new facility brings the overall investment by Intel in its site here to €30 billion,” commented An Taoiseach (Irish Prime Minister) Micheál Martin T.D.

Martin Shanahan, CEO of IDA Ireland (Industrial Development Agency), said: “The further €12 billion investment will have a profound impact on the Irish economy in the coming years. This investment comes on the back of the €18.7 billion invested by Intel since 1989, €5 billion of which has been invested since 2019. In all, Intel’s investment in Ireland (existing and planned) now stands at €30 billion. What is clear from the announcement is that Ireland remains integral to Intel’s European and global plans. Intel’s campus in Leixlip is home to one of the largest industrial construction projects in Europe, and will house some of the most complex manufacturing facilities in the world. Once the facility is operational, employment in Intel Ireland will stand at 6,500.”

In addition, Intel and Italy have entered into negotiations to enable a state-of-the-art back-end manufacturing facility. With a potential investment of up to 4.5 billion euros, this factory would create approximately 1,500 Intel jobs plus an additional 3,500 jobs across suppliers and partners, with operations to start between 2025 and 2027. Intel and Italy aim to make this facility a first of its kind in the EU with new and innovative technologies. This would be in addition to the foundry innovation and growth opportunities Intel expects to pursue in Italy based on its planned acquisition of Tower Semiconductor. Tower has a significant partnership with STMicroelectronics, which has a fab in Agrate Brianza, Italy.

In total, Intel plans to spend more than 33 billion euros on these manufacturing investments. By significantly increasing its manufacturing capacities across the EU, Intel would lay the groundwork to bring various parts of the semiconductor value chain closer together and increase supply chain resiliency in Europe.

 

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