Intel to build semiconductor fabs in Germany ($33 billion), Israel ($25 billion) and Poland ($5 billion)
Intel has signed a contract to build semiconductor fabs in Germany. The agreement provides for investments of $33 billion. Intel’s site near Magdeburg will include at least two plants. The factories will be used to produce chips “using more modern technology than originally planned.” The company does not disclose which process it is talking about, although it notes that the technology will belong to the Angstrom era (18A, 20A).
As part of the agreement, an agreement was reached on state subsidization of the €10 billion project, and the EU must also approve the incentive package. The first facility is expected to start operating within 4-5 years.
A less expensive but no less significant €4.6 billion project awaits Poland – a semiconductor assembly and testing plant. The Wroclaw facility will employ 2,000 people and is expected to be completed in 2027. Design and planning will begin immediately, with construction to start after approval by the European Commission.
Intel’s European efforts are part of a global strategy to build infrastructure on the continent. This intention coincides with the European Union’s plans to become a “semiconductor superpower” and to provide itself with critical electronic components.
The corporation plans to set up a new research, development, and design center in France, as well as lithography and final production facilities in Ireland, Italy, Poland, Spain, and other countries.
Intel also plans to expand its site in Kiryat Gat, Israel. According to Prime Minister Benjamin Netanyahu, the company intends to invest $25 billion in the construction of a new plant. The factory is expected to start operating in 2027, and the Israeli Ministry of Finance expects it to create thousands of jobs. As part of the deal, Intel’s tax rate will be raised to 7.5% from the current 5%.
