Intel is planning billions in investments in Magdeburg

Created: 03/15/2022Updated: 03/15/2022 2:36 p.m

A sign at an Intel manufacturing campus bears the company's logo.

© Susan Montoya Bryan/AP/dpa/archive image

There has been speculation for weeks, now there is clarity: the chip manufacturer Intel is investing billions in a new factory in Magdeburg.

After the car manufacturer Tesla, the next US group is moving to eastern Germany.

Magdeburg/Santa Clara - Great prestige success for Germany as a high-tech location: Magdeburg is awarded the contract for a large chip factory by the US group Intel.

Investments in the billions are planned.

This was announced by the world's largest chip manufacturer on Tuesday.

The capital of Saxony-Anhalt prevailed against a number of other German applicants.

"In the first phase, we are planning investments of 17 billion euros for the construction of two brand new, unique semiconductor factories in Magdeburg," Intel CEO Pat Gelsinger said in a video stream.

Up to six more factories are planned for the coming years.

All new European locations are to be supplied with renewable energy.

Intel announced the construction of a large European factory last year.

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Construction work should start by spring 2023 at the latest.

Production is scheduled to start in 2027.

Several thousand jobs are to be created at Intel and suppliers.

The federal government wants to support the settlement financially.

The traffic light parties SPD, Greens and FDP want to make Germany a global location for the semiconductor industry.

The Magdeburg city council had cleared the way for a new industrial area for the large settlement.

Other locations in Bavaria, Saxony, Mecklenburg-Western Pomerania and in several European countries also applied.

On the one hand, Intel wants to produce processors and graphics chips in Magdeburg that will be sold under its own brand.

At the same time, the Californian group also wants to work as a contract manufacturer for third-party customers as part of Intel Foundry Services (IFS).

Gelsinger, who took over the helm a year ago, is trying to get the world's largest chip manufacturer on course with an enormous investment program.

This includes new factories or site expansions in the US states of California, New Mexico and Arizona as well as in Malaysia.

Intel announced in January that it would build two new factories in the US state of Ohio for more than $20 billion.

dpa