Key takeaways: 

• The Santa Clara chipmaker said it would create a new “mega factory” in Germany as part of the acquisition, financing it with public funding.
• It also promised to make a new R&D and innovation hub in France and finance in R&D, manufacturing, and foundry assistance in Ireland, Italy, Poland, and Spain.
• Intel’s investments are a component of a broader package that will see the firm invest as much as 80 billion euros in Europe over the following decade.

$36 billion to make chips in Germany: 

Intel declared Tuesday that it intends to fund over 33 billion euros ($36 billion) into growing chipmaking across the European Union as the bloc looks to become more self-reliant when it comes to semiconductors.

The Santa Clara-based chipmaker stated it would create two new factories in Madgeburg, Germany, as part of the acquisition. The factories will use the most progressive chip manufacturing technology to make two nanometers or less width.

Intel said that construction is set to start in the first half of 2023, and production will come online in 2027, offering no regulatory problems.

The company said Germany is perfect for installing the new “Silicon Junction” mega-site because of the skill and infrastructure on offer and the current ecosystem of suppliers and buyers.

Intel said some 17 billion euros would be financed in the German facilities, adding that it hopes the investment to produce 7,000 construction jobs throughout the build and 3,000 permanent positions at Intel.

Olaf Scholz, chancellor of Germany, said that the fabs would support rebalance of international silicon capacity and make a more resilient supply chain. According to a statement from The Financial Times, they will be funded with billions of euros in state help.

Outside Germany

Intel also committed to building a new R&D and innovation hub in France and subsidizing R&D, manufacturing, and foundry services in Ireland, Italy, Poland, and Spain.