Intel commits $36 billion to chips manufacturing in Europe

Intel announced on Tuesday that it will invest more than 33 billion euros ($36 billion) in chipmaking across the European Union as the region strives to become more self-sufficient in semiconductors.

As part of the investment, the Santa Clara-based chipmaker will construct two new plants in Madgeburg, Germany. The factories will employ cutting-edge chip manufacturing technology in an effort to produce chips with a width of two nanometers or less.

Construction is expected to begin in the first half of 2023, with production starting in 2027 if no regulatory obstacles arise, according to Intel.

Because of the expertise and infrastructure available, as well as the existing ecosystem of suppliers and consumers, the firm believes Germany is a suitable location for the new “Silicon Junction” mega-site.

According to Intel, 17 billion euros will be invested in the German facilities, with 7,000 construction jobs and 3,000 permanent employment expected to be created over the duration of the project.