Intel launches multibillion-dollar project: What the 17 billion will do

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Intel announced the first phase of its plans to invest Euro 80 billion in the entire semiconductor value chain in the European Union over the next decade, from research and development (R&D) to manufacturing and advanced packaging technologies. Today's announcement includes plans to invest an initial Euro 17 billion in a state-of-the-art semiconductor fab in Germany, a new R&D center in France, and investments in R&D, manufacturing and foundry services in Ireland, Italy, Poland and Spain. With these significant investments, Intel plans to bring its advanced technologies to Europe, create a European ecosystem for next-generation chips, and ensure a more balanced and sustainable supply chain.

Vice President's Statement

Intel executive vice president Pat Gelsinger said: "Our planned investment is an important step for both Intel and Europe. The EU Chip Law will enable private companies and governments to work together to radically improve Europe's position in the semiconductor industry. This broad initiative will foster innovative research and development in Europe and attract advanced manufacturing to the region, benefiting our customers and partners around the world. We intend to play an important role in shaping Europe's digital future for decades to come".

Expanding advanced chip manufacturing in Europe

The investment program aims to rebalance the global semiconductor supply chain by significantly expanding Intel's manufacturing capacity in Europe. Initially, Intel plans to build two first-of-its-kind semiconductor manufacturing plants in Magdeburg, Germany, the capital of the federal state of Saxony-Anhalt. Planning will begin immediately, with construction beginning in the first half of 2023 and the beginning of production scheduled for 2027, subject to approval by the European Commission. The new fabs are expected to produce chips using Intel's most advanced Angstrom-era transistor technology to meet the needs of Intel's foundries and customers in Europe and around the world as part of its IDM (Integrated Device Manufacturer) 2.0 strategy.

Germany, located in the heart of Europe, with its talented workforce, superior infrastructure and existing ecosystem of suppliers and customers, is the ideal location to create a new center - the "Silicon Crossroads" - for advanced chip manufacturing. Intel plans to invest Euro 17 billion in the initial phase, creating 7,000 construction jobs, 3,000 permanent high-tech jobs at Intel and tens of thousands of additional jobs at suppliers and partners. Intel plans to name the new site Silicon Junction to connect technologies. This Silicon Junction will serve as a nexus for other innovation and manufacturing centers across the country and the region.

What is a semiconductor?

Intel continues to invest

Intel is also continuing to invest in its expansion project in Leixlip, Ireland, spending another Euro 12 billion and doubling its manufacturing footprint to bring Intel 4 technology to Europe and expand the foundry. When completed, this project will bring Intel's total investment in Ireland to more than Euro 30 billion.

In addition, Intel and Italy have begun negotiations to build a state-of-the-art manufacturing facility. This plant, which could be an investment of Euro 4.5 billion, will create about 1,500 jobs for Intel and another 3,500 for suppliers and partners and will be operational between 2025 and 2027. Intel and Italy plan to make this plant the first of its kind in the EU using new and innovative technologies. This will complement the innovation and foundry growth opportunities Intel plans to pursue in Italy following its planned acquisition of Tower Semiconductor. Tower has an important partnership with STMicroelectronics, which has a plant in Agrate Brianza, Italy.

In total, Intel plans to spend more than 33 billion Euros on these manufacturing investments. By significantly increasing manufacturing capacity across the EU, Intel will lay the foundation for bringing the different links in the semiconductor value chain closer together and increasing supply chain flexibility in Europe.

Strengthening innovation capabilities

Research and development is critical to the development of advanced semiconductor manufacturing. Europe has world-class universities, research institutes, leading chip designers and suppliers. Supporting this innovation cluster with additional R&D investments and aligning them with Intel's plans to develop advanced manufacturing will broaden the spectrum of innovation in Europe, including greater access to advanced technologies for small and medium-sized enterprises (SMEs).

In the Plateau de Saclay region of France, Intel plans to build its new European R&D center, creating 1,000 new high-tech jobs, 450 of which will be open by the end of 2024. France will become Intel's European headquarters for high-performance computing (HPC) and artificial intelligence (AI) development. Innovations in HPC and AI will benefit many industries including automotive, agriculture, climate, drug discovery, energy, genomics, life sciences and security, significantly improving the lives of every European.

Intel also plans to establish its flagship European Foundry Design Center in France, which will provide design and materials services to French, European and global industrial partners and customers. In Gdansk, Poland, Intel is expanding its lab space by 50% to focus on developing solutions for deep neural networks, audio, graphics, data centers and cloud computing. The expansion is expected to be completed in 2023.

This investment will further strengthen Intel's long-standing ties with European research institutions across the continent, including IMEC in Belgium, Delft University of Technology in the Netherlands, CEA-Leti in France and the Fraunhofer Institutes in Germany. Intel is also forging exciting partnerships in Italy with Leonardo, INFN and CINECA to explore new cutting-edge solutions in high performance computing, memory, programming models, security and cloud computing. In Spain, the Barcelona Supercomputing Center and Intel have been collaborating on exascale architectures for ten years. Now they are developing a zetascale architecture for the next decade. The supercomputing center and Intel plan to set up joint labs in Barcelona to develop computing technologies.

Intel Chip

Positive impact on the whole EU

Intel's ambitious investment plans in Europe will have a positive impact on all EU industries and member states. Establishing manufacturing and R&D facilities of this scale will create an innovation cycle. Intel has been present in Europe for over 30 years and currently employs around 10,000 people in the EU. Intel has spent more than Euro 10 billion on European suppliers in the last two years. As Intel seeks to rebalance the silicon supply globally, this spending is expected to nearly double by 2026.

Intel's investment plans will accelerate the development of advanced chips, support the European materials and equipment supplier industry, and serve a broad customer base across a wide range of industries in Europe. In addition, these investments will attract thousands of additional engineers and technicians, increasing the number of innovators, entrepreneurs and visionaries who will contribute to Europe's digital and "green" future.

Europe's transition to a "green" economy

A modern European semiconductor ecosystem will support the transition to a green economy and help realize Europe's "Green Deal". More efficient chips will reduce the energy consumption of the next wave of digital equipment and drive the development of high-performance computing and artificial intelligence solutions. In 2020, Intel outlined its RISE 2030 strategy and corporate responsibility goals to accelerate the integration of responsible, inclusive and sustainable practices in this decade. In line with the EU climate goals, Intel is working towards the 2030 sustainability goals, including net positive water use by conserving, recycling and reclaiming water, and funding local water projects that recover more freshwater than they consume. In addition, Intel will utilize 100 percent renewable energy and ensure zero waste to landfills.

Jonathan Rowe

Jonathan Rowe

The creator and main author of the site is Jonathan Rowe. Trader and investor with many years of experience. A graduate of the Massachusetts Institute of Technology with over a decade of experience developing applications for financial and investment institutions.

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