Intel to receive €6.8 billion in funding for chip fab in Germany
Intel’s investment in Germany is part of a major expansion set to happen across the EU.
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What you need to know
Intel has big plans for chip fabs over the next few years. A mega site is on the way to Magdeburg, Germany, thanks in part to funding outlined by the European Chips Act. €6.8 billion (roughly $7.3 billion) will go toward the fab in Germany, with €2.72 billion set to be used this year. The exact amount was confirmed in afederal budget statement (PDF)released on Friday, June 3, 2022 (viaTom’s Hardware).
Construction on the mega site is expected to begin in the first half of 2023 and be completed in 2027. It will include two Angstrom-era large chip fabs. These will be used to create Intel 20A nodes and other nodes in the future.
Intel plans to use the Magdeburg mega site for both its own branded processors as well as itsIntel Foundry Services.
While €6.8 billion is a large sum of money, it only covers 40% of the fab, which is expected to cost €17 billion. That figure was determined by the fact that the European Chips Act specified the percentage of the cost that it will cover.
Germany is one of several countries that will see large investment from Intel following the European Chips Act being enacted in February of this year.Intel announced plansto invest as much as €80 billion within the EU, including Ireland, Italy, Poland, and Spain. Notably, theUK will not see investmentfrom Intel due to Brexit.
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Sean Endicott is a tech journalist at Windows Central, specializing in Windows, Microsoft software, AI, and PCs. He’s covered major launches, from Windows 10 and 11 to the rise of AI tools like ChatGPT. Sean’s journey began with the Lumia 740, leading to strong ties with app developers. Outside writing, he coaches American football, utilizing Microsoft services to manage his team. He studied broadcast journalism at Nottingham Trent University and is active on X @SeanEndicott_ and Threads @sean_endicott_.
