Intel announced the first phase of 33 billion euros of European investment, various fields spanning multiple countries, two fabs settled in Germany

Processor leader Intel (Intel) announced on the evening of the 15th Taipei time that it will invest 80 billion euros in the first phase of the EU semiconductor value chain within a decade, covering research and development, manufacturing and state-of-the-art packaging. Germany is investing 17 billion euros in an advanced semiconductor fab, France is building an R&D and design center, and expanding R&D, manufacturing, foundry services and back-end production in Ireland, Italy, Poland and Spain. Through this landmark investment, Intel hopes to bring the most advanced technology to Europe, creating a next-generation European chip ecosystem that is more balanced and flexible to meet supply chain needs.

Intel said that the core of the investment plan is to balance the global semiconductor supply chain and expand Intel’s European production capacity. In the initial stage, it is planned to develop two semiconductor fabs in Magdeburg, the capital of Saxony-Anhalt, Germany. Construction will start in the first half of 2023, and production will be launched in 2027 after obtaining approval from the European Commission. The new facility will use Intel’s most advanced Angstrom-era transistor technology and is part of the IDM 2.0 strategy to meet the needs of foundry customers and Intel itself.

Consistent with market rumors, the reason why Intel chose to invest in German fabs is that Germany has top talent, first-class infrastructure, and an existing supplier and customer ecosystem, making it an ideal place to build a new center for advanced chip manufacturing, “Silicon Junction”. Intel’s initial investment of 17 billion euros will create 7,000 construction jobs, Intel will also provide 3,000 regular high-tech jobs, and create tens of thousands of jobs for suppliers and partners.

In addition to the German fab, Intel will also continue the expansion plan in Leixlip, Ireland, investing 12 billion euros to double its manufacturing space to bring Intel 4 process technology into Europe and expand foundry services. After the expansion, Intel’s total investment in Ireland exceeds 30 billion euros.

In addition, Intel and Italy are actively promoting a state-of-the-art back-end manufacturing plant with a potential investment of up to 4.5 billion euros, operating from 2025 to 2027, providing about 1,500 Intel jobs and creating 3,500 jobs for suppliers and partners. Intel and Italy will strive to make the factory the first factory with innovative technologies in the EU. On the basis of Intel’s acquisition of Takata Semiconductor, it will provide Intel with an opportunity for foundry innovation and growth in Italy. Tower Semiconductor has an important partnership with STMicroelectronics, which has a fab in Agrate Brianza, Italy.

Overall, Intel will invest more than 33 billion euros to significantly increase EU manufacturing capabilities, lay a solid foundation for tighter integration of the semiconductor value chain, and increase the resilience of European supply chains.

In addition to manufacturing, Intel’s R&D and design are critical to advancing leading semiconductor manufacturing, and a new R&D center near the Saclay Plateau in France will create 1,000 high-tech jobs and is expected to provide 450 jobs by the end of 2024. France will be Intel’s European headquarters for high-performance computing (HPC) and artificial intelligence (AI) design. High-performance computing and AI innovations will benefit a wide range of industries and significantly improve the lives of Europeans, including automotive, agriculture, climate, drug discovery, energy, genetics, life sciences and security.

Intel also plans to establish a European foundry design center in France to provide design services and design materials for French, European and world industrial partners and customers, and to expand the Gdansk laboratory space in Poland by 50% to develop deep neural networks. , audio, graphics, data center and cloud computing solutions. The expansion project is due to be completed in 2023.

The investment will strengthen Intel’s long-term relationships with research institutions across the continent, including Belgium’s IMEC, the Netherlands’ Technical University Delft, France’s CEA-Leti and Germany’s Fraunhofer Institutes. Intel is also partnering with Leonardo, INFN and CINECA in Italy to explore advanced solutions for high performance computing, memory, software programming models, security and the cloud. The Barcelona Supercomputing Center in Spain has worked with Intel to develop exascale architectures for the past ten years, and is now developing zettascale architectures for the next ten years, and Intel plans to establish a joint laboratory in Barcelona to promote computing power.

Intel’s European investment plan will have a positive impact on various industries and member states, and through its large-scale manufacturing and R&D capabilities, it is expected to create a virtuous circle. Because Intel has more than 30 years of operating history in Europe, has about 10,000 employees in the EU, and spent more than 10 billion euros on European suppliers in the past two years; as Intel works to rebalance global chip supply, spending will be nearly doubled.

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