Intel unveils investment plans in Europe, Germany - favorite

Posted 15 March, 2022

The American semiconductor giant Intel will unveil on Tuesday the location chosen to set up a factory in Europe which should increase the continent's sovereignty for the production of advanced components, with Germany being the favorite location.

The group must detail in a press conference from 13:00 GMT its investment plan for Europe which amounts to tens of billions of euros and a few thousand jobs.

Expected for several months, the decision of Intel boss Pat Gelsinger should focus on the installation of the main site in Germany, in Magdeburg, capital of the Land of Saxony-Anhalt, located 130 kilometers west of Berlin, say several German media.

For more than a year, the CEO of the American giant has been looking for a site, weighing the offers of the many candidate countries and fiercely negotiating the conditions of the subsidies which were decisive in the choice to turn to Europe.

At the beginning of February, the EU presented its 43 billion euro plan for the semiconductor industry, to reduce its dependence on Asia and conquer 20% of the world market by 2030.

To allow the establishment of very large factories, Brussels has also decided to authorize 30 billion euros in public aid from the Member States to industrialists in the sector, including foreign groups, a windfall on which Intel does not fail to point out that producing this type of component in Europe is 30 to 40% more expensive than in Asia.

The regional television channel MDR claimed in February that Intel had chosen Magdeburg. According to the economic daily Handelsblatt, the group is going to build two production units in this territory of former East Germany, the first stage of a development plan which could make Magdeburg "the largest production site of semi- drivers" in Europe.

If Germany had been the favorite for several months already, it was the Dresden region, the heart of the "Silicon Saxony" already welcoming the big names in electronic chips, which seemed to be in the best position.

It is, in particular, the geographical location of Magdeburg at a crossroads of communication in the center of Germany and Europe, as well as its resources in terms of training, which seduced Intel, say German media.

Pat Gelsinger explained last year that these two production units at 10 billion euros and 1,500 employees each, could be supplemented by six others - a potential investment of 80 billion euros to create a "mega-fab". "European.

France but also Italy could be integrated into Intel's investment project, and host a research laboratory or an assembly plant.

The massive demand for semiconductors, linked to both the digital transition and the new habits taken during the pandemic, combined with production delays due to Covid, has led to a global shortage of these components.

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