Computer graphics of the planned factory: "Important logistical advantages" in Magdeburg
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The US semiconductor manufacturer Intel wants to build two chip factories in Magdeburg as part of an investment offensive worth billions in Europe.
Initially, 17 billion euros are to be invested there;
the planned investments in the EU are expected to total up to 80 billion euros over the next ten years.
The German government and the EU Commission are funding the project.
They hope for more independence from global supply chains.
Intel announces that the start of construction of the two factories in Magdeburg is planned for the first half of 2023.
This requires a subsidy approval from the EU Commission and the approval of the necessary funding by the German authorities.
If these requirements are met, the start of production is planned for 2027.
In the long term, around "3,000 high-tech jobs" could be created locally, with around 7,000 jobs in the construction industry and "tens of thousands of additional jobs with suppliers and partners" being created.
"The most modern semiconductors" are to be manufactured in the two factories.
Magdeburg offers "important logistical advantages";
the location, the Eulenberg industrial area, can be reached at short notice by important suppliers and customers throughout Europe thanks to good connections to motorways and airports.
Intel also mentioned the proximity to the University of Magdeburg "with technical research focuses" as justification.
Even before the official award, there had been media reports that Magdeburg had prevailed as a location.
A high level of financial support from the federal government was in prospect.
The traffic light parties had already laid the foundation for this in the coalition agreement.
It says: »We want to make Germany a global location for the semiconductor industry.
To this end, the German semiconductor industry should also be given sufficient financial support along the entire value chain in order to secure, strengthen and expand this key technology in Europe in a future-proof manner.«
Like the entire industry, the group is benefiting from high demand for chips, which increased sharply after the pandemic shock.
In January, Intel announced plans to build two new factories in the US state of Ohio for more than $20 billion.
Group CEO Pat Gelsinger's strategy includes making Intel a contract manufacturer that produces chips for other suppliers in addition to its own processors.
The group has been looking for a location for a new factory in Europe for some time.
Scholz and Habeck welcome the location decision
Federal Chancellor Olaf Scholz (SPD) describes the decision to build in Magdeburg as “very good news” for Germany as a technology location.
"Production is very important for security of supply and technological advancement in Europe," explained Scholz.
Federal Economics Minister Robert Habeck sees the investment as an impetus for the economy in difficult times.
"The federal government has closely accompanied the settlement process with the state of Saxony-Anhalt and I congratulate Magdeburg and Saxony-Anhalt for this success," he says.
According to the ministry, the goal of the federal government is to build resilient supply chains and efficient production structures for semiconductor products in Germany and Europe.
The Prime Minister of Saxony-Anhalt, Reiner Haseloff (CDU), declared: "It will be the largest investment in the history of Saxony-Anhalt." Such a huge investment and many thousands of new jobs are "a quantum leap for our state".