A rendering shows plans for two new Intel processor factories in Magdeburg, Germany. Photo courtesy of Intel Corp.
June 19 (UPI) — Intel Corp. and the German government on Monday announced a $33 billion plan to build two semiconductor facilities in Magdeburg.
Intel purchased land for the project, dubbed “Silicon Junction,” in November 2022 and has expanded the scope of the project with increased government support since it was first planned.
“Building the ‘Silicon Junction’ in Magdeburg is a critical part of our strategy for Intel’s growth,” CEO Pat Gelsinger said in a news release.
The project is expected to create 3,000 permanent high-tech jobs at Intel and will be the first of its kind in Europe.
“Today’s agreement is an important step for Germany as a high-tech production location — and for our resilience,” German Chancellor Olaf Scholz said. “Intel’s semiconductor production in Magdeburg is the single largest foreign direct investment in German history.”
Last week the company announced a $4.6 billion investment in a new semiconductor assembly and test facility near Wrocław, Poland. Along with that project and an existing wafer fabrication facility in Ireland, Silicon Junction will create an end-to-end semiconductor manufacturing chain in Europe.
Silicon Junction will connect suppliers and companies throughout the technology industry.
Roland Busch, president and CEO of Siemens AG, an industrial manufacturing company based in Germany, congratulated Intel on the announcement.
“Siemens is proud to collaborate with Intel to accelerate the semiconductor ecosystem in Europe,” he said.
Intel said it will develop Silicon Junction in accordance with 2030 sustainability goals, including restoring more water than is consumed, using 100% renewable energy and bringing zero total waste to landfills.
Intel has plans to expand production throughout Europe, including a new research and development and design hub in France and expanded R&D, manufacturing, foundry services and back-end production in Ireland, Italy, Poland and Spain.