Intel To Invest Over $33 Billion For R&D And Manufacturing In EU, $17 Billion Going Toward Two New Fabs In Germany

Intel Corp announced plans to invest over $33 billion into R&D and manufacturing in the EU, with roughly a third of that going towards two new fabs in Germany. The company said it would also significantly increase its investment spending on research related to artificial intelligence (AI) hardware.

Image credit: Intel

What’s the weather like today in Magdeburg, Germany? That’s a question that some of Intel’s future employees might be asking themselves, as the company has announced a plan to build two new processor factories in the historically rich city. Construction of these fabs is scheduled to begin in 2023, and while they aren’t expected to come online until 2027, both have been designed to deliver Intel’s most advanced transistor technologies. The new fabs are part of Intel’s initial commitment in investing $33 billion for R&D and manufacturing in the EU, a number that’s expected to grow to 80 billion euros over the next decade.

“Our planned investments are a major step both for Intel and for Europe,” said Pat Gelsinger, CEO of Intel. “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.”

Intel Announces Initial Investment of Over €33 Billion for R&D and Manufacturing in EU (Intel Newsroom)

Intel today 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. Today’s 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

Expanding Manufacturing Capabilities for “Made in Europe” Chips

With a large increase of Intel’s manufacturing facilities in Europe, the investment program is aimed at balancing the worldwide semiconductor supply chain Intel proposes to build two first-of-their-kind semiconductor fabs in Magdeburg, Germany, the city of Saxony-Anhalt, in the first phase. Planning will begin immediately, with building set to begin in the first half of 2023 and production projected to begin in 2027, assuming authorisation from the European Commission As part of Intel’s IDM (integrated device manufacturer) 2.0 plan, the new fabs are intended to create chips employing Intel’s most sophisticated, Angstrom-era transistor technology, servicing the demands of both foundry customers and Intel for Europe and internationally.

Germany is an attractive location for establishing a new hub – a “Silicon Junction” – for advanced chipmaking because of its central location in Europe, top talent, excellent infrastructure, and existing ecosystem of suppliers and customers. Intel intends to spend 17 billion euros in the project, which will result in the creation of 7,000 construction jobs, 3,000 permanent high-tech employment within Intel, and tens of thousands of more jobs across suppliers and partners. The new location will be known as the Silicon Junction, since it will link technologies. This Silicon Junction will serve as a hub for additional innovation and industrial hubs around the nation and area.

Intel is also investing an extra 12 billion euros in its Leixlip, Ireland, expansion project, tripling the production area and bringing Intel 4 process technology to Europe and expanding foundry services. This expansion will boost Intel’s total investment in Ireland to over 30 billion euros once completed.

In addition, Intel and Italy have begun talks to establish a cutting-edge back-end manufacturing plant. This facility, with a possible investment of up to 4.5 billion euros, would produce roughly 1,500 Intel positions, as well as an additional 3,500 employment via suppliers and partners, with operations beginning between 2025 and 2027. With new and innovative technology, Intel and Italy want to make this facility a first of its type in the EU. In addition, Intel aims to explore foundry innovation and development prospects in Italy as a result of its proposed purchase of Tower Semiconductor. STMicroelectronics, which operates a fab in Agrate Brianza, Italy, has a strong cooperation with Tower.

Intel expects to spend more than 33 billion euros on manufacturing investments in total. Intel would establish the framework for bringing different sections of the semiconductor value chain closer together and enhancing supply chain resilience in Europe by considerably expanding its production facilities throughout the EU.

Europe’s World-Class Innovation Capabilities are Being Strengthened

R&D and design are critical to advance leading-edge semiconductor manufacturing. Europe is home to world-class universities, research institutes, and leading chip designers and suppliers. Supporting this innovation cluster with additional investments in R&D and linking them to Intel’s leading-edge manufacturing plans will boost the circle of innovation in Europe, including providing small and medium enterprises (SMEs) better access to cutting-edge technologies.

Around Plateau de Saclay, France, Intel plans to build its new European R&D hub, creating 1,000 new high-tech jobs at Intel, with 450 jobs available by the end of 2024. France will become Intel’s European headquarters for high performance computing (HPC) and artificial intelligence (AI) design capabilities. HPC and AI innovation will benefit a broad set of industry sectors, including automotive, agriculture, climate, drug discovery, energy, genomics, life sciences and security – greatly improving the life of every European.

Intel also aims to open its major European foundry design center in France, where it will provide design services and collateral to French, European, and international industry partners and clients.

Intel is expanding its lab space by 50% in Gdansk, Poland, with an emphasis on creating deep neural networks, audio, graphics, data center and Cloud Computing technologies. In 2023, the expansion is projected to be finished.

Intel’s long-standing connections with European research institutions like as IMEC in Belgium, Technical University Delft in the Netherlands, CEA-Leti in France, and the Fraunhofer Institutes in Germany will be strengthened by these investments. In Italy, Intel is forming intriguing relationships with Leonardo, INFN, and CINECA to investigate innovative new solutions in HPC, memory, software programming models, security, and cloud computing.

The Barcelona Supercomputing Center and Intel have been working together on exascale architecture in Spain over the last decade. They are now working on zettascale architecture over the next ten years. To promote computing, the supercomputing center and Intel aim to open collaborative laboratories in Barcelona.

Positive Cross-European Spillover Effects

Intel’s ambitious European investment plans will have positive effects across industries and member states. Building up manufacturing capacities and R&D capabilities at this scale will create a virtuous cycle of innovation.

Intel has had a presence in Europe for over 30 years and now employs over 10,000 employees throughout the continent. Intel has spent more than 10 billion euros with European vendors in the last two years. By 2026, as Intel seeks to rebalance global silicon supply, that outlay is likely to almost treble.

Intel’s investment plans will help the company develop cutting-edge chip design skills, enhance the European material and equipment supplier business, and service a diverse customer base in Europe. Moreover, the investments would attract thousands of new engineers and technical employees, expanding the pool of innovators, entrepreneurs, and visionaries who will drive Europe’s digital and green future forward.

Supporting Europe’s Transition to a Greener Future

A cutting-edge European semiconductor ecosystem will aid in the green transition and the implementation of the European Green Deal. While enabling HPC and AI solutions, more efficient processors may cut the power consumption of the next generation of digital gear. Intel’s 2030 RISE strategy and corporate responsibility targets were announced in 2020, with the purpose of accelerating the integration of responsible, inclusive, and sustainable practices over the next decade. Intel is on pace to meet its 2030 sustainability objectives, which include attaining net positive water consumption by saving, reusing, and recovering water, as well as sponsoring local water projects that restore more fresh water than it uses, in accordance with EU climate targets. Intel will also use 100 percent renewable energy to power its worldwide manufacturing activities and achieve zero waste to landfills.

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