Intel® invests in Magdeburg
"A great day for the city of Magdeburg, for Saxony-Anhalt and for Germany! With Intel®'s positive decision to locate at the Eulenberg site, Magdeburg has prevailed in the global location competition against 70 locations in ten European countries. Together with our partners - first and foremost Germany Trade and Invest (GTAI), the Ministry of Economics and the state capital, as well as the Employment Agency and the Investment Bank (IB) - I am delighted with this success, which will have a decisive impact on the future of the region," says Thomas Einsfelder, Managing Director of Investitions- und Marketinggesellschaft Saxony-Anhalt (IMG).
Our team, consisting of experienced project managers, location marketing and talent service experts, has invested a lot of work in this project since the company's first inquiry at the end of March 2021 and has done an excellent job in the network with our partners. I would like to thank Marc Pappert, Division Manager Investor Services and authorized signatory of IMG, and his team for their professional and passionate commitment. We at IMG recognized the market environment for talent services at an early stage and strengthened our company in this respect. The combination of the location offer, the existing ecosystem of relevant industries and scientific institutions as well as a customer-oriented service in the areas of skilled labor service, location marketing and public authority management, among others - coupled with our speed and the highest quality of work - convinced the investor. Winning a gigantic project like this is only possible if all partners work hand in hand and pull together from the very first hour. I am very grateful to our partners and look forward to this project now taking shape.
High tech jobs
hectare area near Magdeburg
% goal to be powered by renewable electricity
Investments advance world-class semiconductor ecosystem in Europe, spanning France, Germany, Ireland, Italy, Poland and Spain.
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.
Pat Gelsinger, CEO of Intel, said: “Our planned investments are a major step both for Intel and for Europe. 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.”
Expanding Leading-Edge Manufacturing Capacities for ‘Made in Europe’ Chips
The investment program is centered around balancing the global semiconductor supply chain with a major expansion of Intel’s production capacities in Europe. In the initial phase, Intel plans to develop two first-of-their-kind semiconductor fabs in Magdeburg, Germany, the capital of Saxony-Anhalt. Planning will start immediately, with construction expected to begin in the first half of 2023 and production planned to come online in 2027, pending European Commission approval. The new fabs are expected to deliver chips using Intel’s most advanced, Angstrom-era transistor technologies, serving the needs of both foundry customers and Intel for Europe and globally as part of the company’s IDM (integrated device manufacturer) 2.0 strategy.
Silicon Junction Magdeburg
At the center of Europe and with top talent, superb infrastructure and an existing ecosystem of suppliers and customers, Germany is an ideal place to establish a new hub – a “Silicon Junction” – for advanced chipmaking. Intel plans to initially invest 17 billion euros, creating 7,000 construction jobs over the course of the build, 3,000 permanent high-tech jobs at Intel, and tens of thousands of additional jobs across suppliers and partners. Intel plans to refer to the new site as the Silicon Junction, connecting technology. This Silicon Junction will serve as the connection point for other centers of innovation and manufacturing across the country and region.
Intel is also continuing to invest in its Leixlip, Ireland, expansion project, spending an additional 12 billion euros and doubling the manufacturing space to bring Intel 4 process technology to Europe and expand foundry services. Once complete, this expansion will bring Intel’s total investment in Ireland to more than 30 billion euros.
In addition, Intel and Italy have entered into negotiations to enable a state-of-the-art back-end manufacturing facility. With a potential investment of up to 4.5 billion euros, this factory would create approximately 1,500 Intel jobs plus an additional 3,500 jobs across suppliers and partners, with operations to start between 2025 and 2027. Intel and Italy aim to make this facility a first of its kind in the EU with new and innovative technologies. This would be in addition to the foundry innovation and growth opportunities Intel expects to pursue in Italy based on its planned acquisition of Tower Semiconductor. Tower has a significant partnership with STMicroelectronics, which has a fab in Agrate Brianza, Italy.
In total, Intel plans to spend more than 33 billion euros on these manufacturing investments. By significantly increasing its manufacturing capacities across the EU, Intel would lay the groundwork to bring various parts of the semiconductor value chain closer together and increase supply chain resiliency in Europe.
Strengthening Europe’s World-Class Innovation Capabilities
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. (Video: Ursula von der Leyen, EU Commission President, Speaks to Intel's EU Investment Plans)
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.
In addition, Intel plans to establish its main European foundry design center in France, offering design services and design collaterals to French, European and worldwide industry partners and customers.
In Gdansk, Poland, Intel is increasing its lab space by 50% with a focus on developing solutions in the fields of deep neural networks, audio, graphics, data center and cloud computing. The expansion is expected to be completed in 2023.
These investments will further strengthen Intel’s long-standing relationships with European research institutes across the continent, including IMEC in Belgium, Technical University Delft in the Netherlands, CEA-Leti in France and the Fraunhofer Institutes in Germany. Intel is also developing exciting partnerships in Italy with Leonardo, INFN and CINECA to explore advanced new solutions in HPC, memory, software programming models, security and cloud.
Over the past decade in Spain, the Barcelona Supercomputing Center and Intel have been collaborating on exascale architecture. Now, they are developing zettascale architecture for the next decade. The supercomputing center and Intel plan to establish joint labs in Barcelona to advance computing.
Positive Spillover Effects across the EU
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 been present in Europe for more than 30 years and currently employs around 10,000 people throughout the EU. In the past two years, Intel has spent more than 10 billion euros with European suppliers. As Intel works to rebalance silicon supply globally, that spend is expected to nearly double by 2026.
Intel’s investment plans will accelerate leading-edge chip design capabilities, boost the European material and equipment supplier industry, and serve the strong customer base across industries in Europe. Additionally, the investments would be a magnet for thousands of additional engineers and technical workers, growing the pool of innovators, entrepreneurs and visionaries that will advance Europe’s digital and green future.
Supporting Europe’s Green Transition
A state-of-the-art European semiconductor ecosystem will support the green transition and help deliver the European Green Deal. More efficient chips can reduce the power consumption of the next wave of digital hardware while driving HPC and AI solutions. In 2020, Intel outlined its 2030 RISE strategy and corporate responsibility goals to accelerate the integration of responsible, inclusive and sustainable practices over this decade. In line with the EU’s climate targets, Intel is on track to achieve its 2030 sustainability goals, including achieving net positive water use by conserving, recycling and reclaiming water, and funding local water projects that restore more fresh water than it consumes. In addition, Intel will power its global manufacturing operations with 100% renewable energy and achieve zero total waste to landfills.
Chip manufacturer Intel today announced that it will invest in Magdeburg. Saxony-Anhalt’s Minister President Dr Reiner Haseloff explains: “The in-depth talks which the state government and city of Magdeburg conducted with Intel in recent months have paid off. We presented ourselves as an excellent location with great prospects, and can now look forward to thousands of new jobs and investments in the billions in Saxony-Anhalt. This is one of the largest investment projects Germany or Europe has ever seen. It’s a quantum leap for Saxony-Anhalt, an economic milestone for the eastern German region, and a great day for Germany as a whole. The people of Magdeburg and Saxony-Anhalt welcome Intel with open arms.”
“Our comprehensive application, the many discussions we held and, not least, establishing the planning prerequisites for the Eulenberg site have paid off. Intel’s planned mega chip factory will be the largest investment in our city’s history. My thanks to all who spent the past months advocating for Magdeburg as the location, especially the people at Intel, the European Union, the federal government, the state of Saxony-Anhalt and the city council. Intel’s plan will invigorate our city’s development and help Magdeburg become an economic centre in the heart of Europe,” stressed Dr Lutz Trümper, Lord Mayor of the City of Magdeburg.
Minister for the Economy Sven Schulze emphasised: “Saxony-Anhalt is bursting with pride to see a global corporation like Intel come here to Magdeburg. This will not only boost our domestic industries, but also strengthen Saxony-Anhalt as a location for business. We’ll keep working hard to provide the right conditions for Intel to get off to a good start and thrive over the long term.”