Agreement accounts for Intel’s expanded
investment to build two leading-edge semiconductor facilities in
Germany.
NEWS HIGHLIGHTS
- Investment of more than 30 billion euros in Germany is a major
expansion of Intel’s manufacturing capacity in Europe.
- “Silicon Junction” is expected to enter production at a more
advanced technology than originally planned and will be the first
of its kind in Europe.
- Intel’s investments create the foundation for a next-generation
European chip ecosystem, helping the European Union advance its
goal of a more resilient semiconductor supply chain.
- The site will be constructed according to green building
principles and will operate with high environmental standards to
minimize its carbon footprint and environmental impact.
Intel and the German federal government have
signed a revised letter of intent for Intel’s planned leading-edge
wafer fabrication site in Magdeburg, the capital of Saxony-Anhalt
state in Germany. The agreement encompasses Intel’s expanded
investment in the site, now expected to be more than 30 billion
euros for two first-of-a-kind semiconductor facilities (also known
as “fabs”) in Europe, along with increased government support that
includes incentives, reflecting the expanded scope and change in
economic conditions since the site was first announced.
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A rendering shows early plans for two new
Intel processor factories in Magdeburg, Germany. Announced in March
2022, the project will deliver computer chips using Intel's most
advanced transistor technologies. (Credit: Intel Corporation)
Intel acquired the land for the project in November 2022, and
the first facility is expected to enter production in four to five
years following the European Commission’s approval of the incentive
package. Given the current timeline and scale of the investment,
Intel plans to deploy more advanced Angstrom-era technology in the
facilities than originally envisioned. The Magdeburg site will
serve Intel products and Intel Foundry Services customers.
Press Kit: Intel Plans Investments in Europe
“Building the ‘Silicon Junction’ in Magdeburg is a critical part
of our strategy for Intel’s growth. Combined with last week’s
announcement of our investment in Wrocław, Poland, and the Ireland
sites we already operate at scale, this creates a capacity corridor
from wafers to complete packaged products that is unrivaled and a
major step toward a balanced and resilient supply chain for
Europe,” said Intel CEO Pat Gelsinger. “We’re grateful to the
German federal government, Chancellor Olaf Scholz and the
government of Saxony-Anhalt for their partnership and shared
commitment to fulfilling the vision of a vibrant, sustainable,
leading-edge semiconductor industry in Germany and the EU.”
Chancellor Olaf Scholz of Germany said, “Today’s agreement is an
important step for Germany as a high-tech production location – and
for our resilience. Intel’s semiconductor production in Magdeburg
is the single largest foreign direct investment in German history.
With this investment, we are catching up technologically with the
world’s best and expanding our own capacities for the ecosystem
development and production of microchips. This is good news for
Magdeburg, for Germany and for all of Europe.”
Intel’s investment will drive significant economic benefits not
only in Magdeburg and Saxony-Anhalt, but across the country and
throughout the European Union. Along with Intel’s existing wafer
fabrication facility in Ireland and its recently announced assembly
and test facility in Poland, the new wafer fabrication site in
Magdeburg will create a first-of-its-kind, leading-edge end-to-end
semiconductor manufacturing value chain in Europe, serving European
customers and helping to fulfill the EU’s ambitions for a more
resilient semiconductor supply chain.
“Congratulations to Intel on further expansion here in Germany.
Siemens is proud to collaborate with Intel to accelerate the
semiconductor ecosystem in Europe. We are a key technology partner
for this industry, supporting manufacturers to scale and build more
resilient supply chains,” said Roland Busch, president and CEO,
Siemens AG.
The Silicon Junction will serve as the connection point for
other centers of innovation and manufacturing across the country
and region, promoting the development of a broad ecosystem of
suppliers and companies across the technology industry. The site is
expected to create 7,000 construction jobs over the course of the
first phase of the build, approximately 3,000 permanent high-tech
jobs at Intel and tens of thousands of additional jobs across the
industry ecosystem.
Intel is committed to developing the Silicon Junction in line
with its 2030 sustainability goals, including achieving net
positive water use by conserving, recycling and reclaiming water,
and funding local water projects that help restore more freshwater
than Intel facilities consume. In addition, Intel has set goals to
power its global manufacturing operations with 100% renewable
energy and to achieve zero total waste to landfills.
Germany has world-renowned universities and technical training
programs and a tradition of innovation and engineering that have
made it home to some of the world’s most successful and admired
companies, including many of Intel’s most important customers and
partners. As it does in its other major sites around the world,
Intel plans to work closely with local universities, research
institutions and training programs to further develop a diverse
workforce that can make the site successful and help grow the
overall pool of innovators, entrepreneurs and visionaries that will
advance Europe’s digital and green future.
About Intel
Intel (Nasdaq: INTC) is an industry leader, creating
world-changing technology that enables global progress and enriches
lives. Inspired by Moore’s Law, we continuously work to advance the
design and manufacturing of semiconductors to help address our
customers’ greatest challenges. By embedding intelligence in the
cloud, network, edge and every kind of computing device, we unleash
the potential of data to transform business and society for the
better. To learn more about Intel’s innovations, go to
newsroom.intel.com and intel.com.
Forward-Looking Statements
This press release contains forward-looking statements that
involve a number of risks and uncertainties. Words such as
“anticipates,” “expects,” “intends,” “goals,” “plans,” “believes,”
“seeks,” “estimates,” “continues,” “may,” “will,” “would,”
“should,” “could,” and variations of such words and similar
expressions are intended to identify such forward-looking
statements, which may include statements regarding: our
manufacturing expansion and investment plans and expectations in
the European Union (EU) and the anticipated benefits therefrom;
anticipated supplier, ecosystem, community, and government support
and approval for our planned EU investments and anticipated
benefits related to such support; environmental plans for and
benefits from our factories and technologies; and other
characterizations of future plans, expectations, events, or
circumstances.
Such statements involve risks and uncertainties that could cause
our actual results to differ materially from those expressed or
implied, including: changes in demand for our products; Intel’s
failure to realize the anticipated benefits of its strategy, plans,
and proposed transactions; construction delays or changes in plans
due to business, economic, or other factors; increases in capital
requirements and changes in capital investment plans; adverse
changes in anticipated government incentives and associated
approval related to Intel’s planned EU investments; adverse
legislative or other government actions; insufficient ecosystem
support; the impact of macroeconomic and geopolitical trends and
events; and other risks and uncertainties described in this press
release , our earnings release dated April 27, 2023, our 2022
Annual Report on Form 10-K and our other filings with the SEC.
All information in this press release reflects management’s
views as of the date hereof, unless an earlier date is specified.
We do not undertake, and expressly disclaims any duty, to update
such statements, whether as a result of new information, new
developments, or otherwise, except to the extent that disclosure
may be required by law.
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are trademarks of Intel Corporation or its subsidiaries. Other
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Markus Weingartner +49-89-991433145
markus.weingartner@intel.com
William Moss 1-650-521-1754 william.moss@intel.com
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