Semiconductor giant Intel unveils massive investment plan in Europe

The US semiconductor giant Intel on Tuesday unveiled a “historic” investment plan of up to 80 billion euros in the European Union in ten years to produce microchips, and the implementation in Germany of a manufacturing “megasite”

The detail of these announcements was highly anticipated within the EU, which seeks to increase its sovereignty in the production of these essential components for cars or smartphones, and whose supply — dominated by Asian manufacturers — is insufficient.

The program includes 17 billion euros to set up a site in Germany, in Magdeburg (northeast), but also the creation of a research and development center in France, as well as R&D investments in Ireland, Italy, Poland or Spain, with the aim of creating a “European microchip ecosystem”, the group said in a statement.

“We respond to the global need for a more balanced and resilient supply chain,” Intel President Pat Gelsinger explained at a press conference

Microchips are the “brains that feed essential digital technologies,” he said, alluding to the “risk of being dependent on a single region,” when the disruption of logistics chains due to covid accentuated the shortage of these components.

Germany takes the lion's share: the city of Magdeburg, located 130 km west of Berlin, gains the establishment of two factories. The country is already home to the largest semiconductor ecosystem in Europe, with groups such as Bosch or Infineon.

The future site, expected in 2027, will create “7,000 jobs for the construction phase, 3,000 permanent high-tech jobs at Intel and dozens of additional jobs” among suppliers, according to the group.

The European Commission had recently authorised 30 billion euros of public aid from Member States to semiconductor industrialists, including foreigners, a decisive investment in Intel's choice, despite the fact that producing such components in Europe is 30-40% more expensive than in Asia.

Intel's announcement “is the first major realization” of the European plan, congratulated European Commission President Ursula von der Leyen in a video message.