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Released March 28, 2022 | GALWAY, IRELAND
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GALWAY, IRELAND--March 28, 2022--Written by Martin Lynch, European News
Editor for Industrial Info (Galway, Ireland)--Chip giant Intel Corporation (NASDAQ:INTC) (Santa Clara, California) has announced a massive 33 billion euros (US$36.3 billion) investment in its European semiconductor manufacturing and R&D operations.
The company said that the investment "is centered around balancing the global semiconductor supply chain," with the bulk of the investment being spent in Germany, Ireland, Italy, France and Poland. Overall, the company expects to spend as much as 80 billion euros (US$88 billion) in the European Union (EU) over the next decade along the entire semiconductor value chain--from research and development (R&D) to manufacturing to state-of-the art packaging technologies.
The company will develop two "first-of-their-kind" semiconductor fabs in Magdeburg, Germany, spending 17 billion euros (US$18.7 billion) on the plants, with planning expected to commence immediately and full commissioning in 2027, pending European Commission (EC) approval. The plants will make chips using the company's latest Angstrom-era transistor technologies. Intel said the output will serve the needs of both foundry customers and Intel for Europe and globally as part of the company's "IDM (integrated device manufacturer) 2.0 strategy." The new site will be known as Silicon Junction and employ more than 3,000 people when complete.
In Ireland, it will continue its investment in its Leixlip expansion project, spending an additional 12 billion euros (US$13.2 billion) and doubling the manufacturing space to bring Intel 4 process technology to Europe and expand foundry services. Once complete, it will bring Intel's total investment in Ireland to more than 30 billion euros (US$33 billion).
"Our planned investments are a major step both for Intel and for Europe," said Pat Gelsinger, chief executive officer of Intel. The EU Chips Act will empower private companies and governments to work together to drastically advance Europe's position in the semiconductor sector. This broad initiative will boost Europe's R&D innovation and bring leading-edge manufacturing to the region for the benefit of our customers and partners around the world. We are committed to playing an essential role in shaping Europe's digital future for decades to come."
The major investment was welcomed by the European Commission President Ursula von der Leyen: "I see today's announcement by Intel as a first major achievement under the EU Chips Act. An 80 billion euros investment over the next decade across the entire semiconductor value chain. From R&D to manufacturing and advanced packaging. With many strong local partners. It is a considerable contribution to the European Chips ecosystem that we are building right now."
She added: "A month ago, the Commission presented the EU Chips Act. With the EU Chips Act, we want to make Europe a leader in the global semiconductor production. And we also want to strengthen our resilience, with home-grown, secure technologies, which are invaluable assets in the turbulent world we live in. Our goal is to have 20% of the world's microchips production in Europe, by 2030. That's twice as much as today, in a market that is set to double in the next decade." For additional information on the EU Chips Act, see February 21, 2022, article - Europe Enacts 'Chips Act' to Battle Semiconductor Shortages.
Intel will also invest in Italy where negotiations are underway with the government to build a US$5 billion packaging and assembly plant that will employ 1,500 people, with operations to start between 2025 and 2027. This is in addition to its planned acquisition of Tower Semiconductor (NYSE:TSEM), a company with a significant partnership with STMicroelectronics (NYSE:STM), which has a fab in Agrate Brianza, Italy.
Around the Plateau de Saclay region in France, Intel plans to build its new European R&D hub, creating 1,000 new high-tech jobs, with 450 jobs to be available by the end of 2024. It will become Intel's European headquarters for high performance computing (HPC) and artificial intelligence (AI) design capabilities, targeting a range of industry sectors, including automotive, agriculture, climate, drug discovery, energy, genomics, life sciences and security. France will also become home to its main European foundry design center. In Gdansk, Poland, Intel will boost its lab space by 50% with a focus on developing solutions in the fields of deep neural networks, audio, graphics, data center and cloud computing. The expansion is expected to be completed in 2023.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
The company said that the investment "is centered around balancing the global semiconductor supply chain," with the bulk of the investment being spent in Germany, Ireland, Italy, France and Poland. Overall, the company expects to spend as much as 80 billion euros (US$88 billion) in the European Union (EU) over the next decade along the entire semiconductor value chain--from research and development (R&D) to manufacturing to state-of-the art packaging technologies.
The company will develop two "first-of-their-kind" semiconductor fabs in Magdeburg, Germany, spending 17 billion euros (US$18.7 billion) on the plants, with planning expected to commence immediately and full commissioning in 2027, pending European Commission (EC) approval. The plants will make chips using the company's latest Angstrom-era transistor technologies. Intel said the output will serve the needs of both foundry customers and Intel for Europe and globally as part of the company's "IDM (integrated device manufacturer) 2.0 strategy." The new site will be known as Silicon Junction and employ more than 3,000 people when complete.
In Ireland, it will continue its investment in its Leixlip expansion project, spending an additional 12 billion euros (US$13.2 billion) and doubling the manufacturing space to bring Intel 4 process technology to Europe and expand foundry services. Once complete, it will bring Intel's total investment in Ireland to more than 30 billion euros (US$33 billion).
"Our planned investments are a major step both for Intel and for Europe," said Pat Gelsinger, chief executive officer of Intel. The EU Chips Act will empower private companies and governments to work together to drastically advance Europe's position in the semiconductor sector. This broad initiative will boost Europe's R&D innovation and bring leading-edge manufacturing to the region for the benefit of our customers and partners around the world. We are committed to playing an essential role in shaping Europe's digital future for decades to come."
The major investment was welcomed by the European Commission President Ursula von der Leyen: "I see today's announcement by Intel as a first major achievement under the EU Chips Act. An 80 billion euros investment over the next decade across the entire semiconductor value chain. From R&D to manufacturing and advanced packaging. With many strong local partners. It is a considerable contribution to the European Chips ecosystem that we are building right now."
She added: "A month ago, the Commission presented the EU Chips Act. With the EU Chips Act, we want to make Europe a leader in the global semiconductor production. And we also want to strengthen our resilience, with home-grown, secure technologies, which are invaluable assets in the turbulent world we live in. Our goal is to have 20% of the world's microchips production in Europe, by 2030. That's twice as much as today, in a market that is set to double in the next decade." For additional information on the EU Chips Act, see February 21, 2022, article - Europe Enacts 'Chips Act' to Battle Semiconductor Shortages.
Intel will also invest in Italy where negotiations are underway with the government to build a US$5 billion packaging and assembly plant that will employ 1,500 people, with operations to start between 2025 and 2027. This is in addition to its planned acquisition of Tower Semiconductor (NYSE:TSEM), a company with a significant partnership with STMicroelectronics (NYSE:STM), which has a fab in Agrate Brianza, Italy.
Around the Plateau de Saclay region in France, Intel plans to build its new European R&D hub, creating 1,000 new high-tech jobs, with 450 jobs to be available by the end of 2024. It will become Intel's European headquarters for high performance computing (HPC) and artificial intelligence (AI) design capabilities, targeting a range of industry sectors, including automotive, agriculture, climate, drug discovery, energy, genomics, life sciences and security. France will also become home to its main European foundry design center. In Gdansk, Poland, Intel will boost its lab space by 50% with a focus on developing solutions in the fields of deep neural networks, audio, graphics, data center and cloud computing. The expansion is expected to be completed in 2023.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
