Intel today announced the first phase of its intentions to spend up to 80 billion euros (87.8 billion dollars) in the European Union over the next decade throughout the entire semiconductor value chain, from R&D to manufacturing cutting-edge packaging technologies.

Today, plans were announced to invest 17 billion euros in a leading-edge semiconductor fab mega-site in Germany, establish a new R&D and design center in France, and invest in R&D, manufacturing, and foundry services in Ireland, Italy, Poland, and Spain.

Intel intends to deliver its most advanced technology to Europe with this significant investment, establishing a next-generation European chip ecosystem and addressing the demand for a more balanced and robust supply chain.

Early designs for two new Intel CPU facilities in Magdeburg, Germany, are seen in this graphic. The 17 billion euro project, which was announced in March 2022, would provide computer processors employing Intel’s most sophisticated transistor technology. The construction will start in the first half of 2023, and production will begin in 2027.

“Our planned investments represent a big milestone both for Intel and for Europe,” stated Intel CEO Pat Gelsinger. The EU Chips Act would enable private enterprises and governments to collaborate to significantly improve Europe’s position in the semiconductor industry.

Throughout the world, for the benefit of our customers and partners, this comprehensive program will strengthen Europe’s R&D innovation and bring cutting-edge manufacturing to the area. For decades to come, we are dedicated to playing a critical role in defining Europe’s digital future.

Expanding Manufacturing Capabilities for “Made in Europe” Chips

With a considerable increase in Intel’s production facilities in Europe, the investment program balances 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 the building set to begin in the first half of 2023 and production projected to begin in 2027, assuming authorization 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.