Intel investing Euro 80 billion in EU across entire semiconductor value chain: Pat Gelsinger

Intel Corp. has announced an investment worth Euro 80 billion in the European Union across the entire semiconductor value chain.



Pat Gelsinger, CEO, Intel, said we are building the best semiconductor ecosystem. Nearly a year ago, we increased semiconductor R&D in global manufacturing capacity in the USA and the EU. This included a role for EU to gain in semiconductor manufacturing leadership.



In January 2022, Intel announced plans for investment of $20 billion in two new leading-edge chip fabs in the state of Ohio, USA. We also pledged a partnership worth $100 million with educational institutes to build a pipeline of talent, and bolster research programs in the region. We are now announcing our European investment plans. This is a whole new listing of world-class investment that will create a world-class ecosystem. This is a holistic investment strategy to create world-class EU chip ecosystem.



Plans for Europe

Intel will be investing Euro 80 billion in the EU over the next decade across the entire semiconductor value chain. This will be from R&D and chip design, to advanced packaging, manufacturing and foundry services. In phase one, we are starting with Euro 17 billion leading-edge semiconductor mega site in Saxony-Anhalt, Germany. We are also continuing our fab expansion in Ireland with Euro 12 billion investment. We are planning a new R&D and design hub in France. We are also expanding capabilities in R&D, manufacturing, foundry services, and assessing state-of-the-art packaging technology in Italy, Poland, and Spain.



We are doing this because the world has an insatiable demand for semiconductors and chips. They are the brains powering the essential digital technologies. With the world becoming digital, semiconductors are more critical than ever.



With this landmark investment, Intel will bring its most advanced technology to the continent, helping the EU create a next-generation European chip ecosystem and addressing the global need for a more balanced and resilient supply chain.



Today, many industries are at a standstill as they do not have enough chips. They also need to figure out how not to be dependent on any one region in the short term. Today, 80% of the chips are produced in Asia. With the Europe investment plan, we are now addressing the global need for a balanced supply chain. We are planning to bring the most advanced technology to Europe. We are helping Europe create a next-generation chip ecosystem.



Europe’s goal: 20% of global chip production by 2030

Ms. Ursula von der Leyen, President, European Commission, said the European Chips Act was launched some months ago. The aim was to make Europe a leader in the global semiconductor production. We also want to strengthen our resilience with home-grown, secure technologies. The goal is to have 20% of the global chip production in Europe by 2030. That's twice as much as today, in a market that is set to double in a decade.

We want Europe to cross new frontiers in innovation, breaking the 3nm node barrier, for example. We can create energy-efficient chips, develop new technologies and apps that are minds can't even conceive today. We now need to mobilize the best that Europe has. From fundamental research to market apps. We will need a network of research institutions. They can be prototyping and testing. There can be advanced production and facilities everywhere on the continent.



In short, we need a true, whole of Europe approach. We also need massive investments. In total, more than Euro 43 billion of public investment will support the Chips Act until 2030. It will make Europe a more attractive place for technology companies to invest in cutting-edge chip development and production. The announcement made by Intel is the first major achievement under the EU Chips Act.



There will be Euro 80 billion investment across the entire semiconductor value chain till 2030. These will be from R&D and manufacturing, to advanced packaging, with many strong local partners. It will pave the way for better jobs, and for more companies to follow suit.



Europe is a powerhouse of innovation. We have some of the best minds and talent in R&D. We have a skilled workforce. We have a stable and attractive market. We are also open for business.



Intel plans

Gelsinger spoke about the new mega site in Germany. Intel is investing Euro 17 billion in two first-of-its-kind semiconductor fabs in Magdeburg, Saxony-Anhalt, Germany. A semiconductor fab has specific requirements. The mega fab construction site requires 5 Eiffel Towers of structural steel, 240 swimming pools in concrete value, 2 World Cup football fields of clean-room space, and millions of trades-person hours.



Germany is a wonderful location to have a new fab. Will also strengthen Germany's leadership in high-tech. We hope to break ground in H1-2023, and have leadership products by 2027. The two new fabs in Magdeburg will create 7,000 construction jobs and 3,000 permanent high-tech jobs, and thousands of jobs across suppliers and partners. This will lead to chips-related industrial technology and growth.



Intel will invest an additional Euro 12 billion in fab expansion in Leixlip, Ireland. We will bring Intel4 process technology to Europe and expand foundry services. Intel is also into negotiations to enable a state-of-the-art backend manufacturing facility in Italy, with a potential investment of Euro 4.5 billion. This can create 1,500 Intel jobs, as well as 3,500 jobs across suppliers and partners. This will be in addition to the foundry opportunity Intel expects to pursue. Intel is also developing partnerships in Italy with Leonardo, INFN and CINECA to explore advanced new solutions in HPC, memory, software programming models, security and cloud.



Intel recently announced plans to acquire Tower Semiconductor. Tower has significant partnership with STMicroelectronics. This can be a catalyst for expanding Intel Foundry Services in Europe to serve sectors such as automotive, industrial, personal electronics, etc.



Intel will also create an R&D hub in Plateau de Saclay, France. It will further create 1,000 high-tech jobs. Intel expects to hire 450 members by the end of 2024. France would become Intel's center for HPC and AI design capabilities. Intel also plans to host a design center in France offering design services and collaterals for worldwide customers.



In Gdansk, Poland, Intel is looking to increase the lab space by 50%. It will be used to develop deep neural solutions in audio, graphics, data center and cloud computing.



In Spain, Intel has been collaborating with Barcelona Supercomputing Center on exascale architecture. We are now developing the zetascale architecture. The supercomputing center and Intel plan to establish joint labs in Barcelona to advance computing. Intel also has long-standing relationships with EU-based research institutions such as IMEC, CEA-Leti, Technical University Delft, and Fraunhofer Institute.



The new site in Germany is being looked at as Intel's Silicon Junction. Intel put the silicon in Silicon Valley, USA. We have the Silicon Desert in Arizona and New Mexico. We are building the Silicon Heartland in Ohio. We have the Silicon Aisle in Ireland. Now, we will have the Silicon Junction in Germany.



In the past two years, Intel has spent Euro 10 billion supporting European suppliers, and expects to nearly double that by 2026. A state-of-the-art semiconductor ecosystem will support the green transition and help deliver the European Green Deal. Intel will power all new European sites with 100% renewable energy. A stronger semiconductor industry in Europe benefits all.



Luc Van den hove, President and CEO, IMEC, Belgium, said Intel and IMEC have been partners for over 25 years. Together, we are putting our way behind the European Chips Act.

Olaf Scholz, Chancellor of Germany said: "Germany welcomes Intel and the significant investment the company plans to make, creating 3,000 high-tech jobs and many more, along the value chain. The first-of-its-kind fab site in the EU will also rebalance the global silicon capacity and create a more resilient supply chain."

Ms. Sandra-Yvonne Stieger, Vice Mayor of Magdeburg, Germany, added that they will start immediately on the site, and finish latest by 2024, so that Intel can start production over there.