Intel has announced plans to invest over 30 billion euros ($33 billion) in the development of two chip-making plants in Magdeburg, Germany, as part of its expansion strategy in Europe. The deal, hailed as Germany’s largest-ever foreign investment by Chancellor Olaf Scholz, signifies Intel’s commitment to strengthening its presence in the region.
In an agreement with the German government, Intel will receive subsidies amounting to nearly 10 billion euros, surpassing the initial offer of 6.8 billion euros. These subsidies aim to support the construction of two state-of-the-art facilities in Magdeburg, located in the state of Saxony-Anhalt.
Expressing gratitude to the government and Saxony-Anhalt, Intel CEO Pat Gelsinger emphasized the significance of the investment in realizing a thriving and sustainable semiconductor industry in Germany and the European Union (EU). Gelsinger has been leading Intel’s efforts to invest billions in building factories worldwide, aiming to regain its leadership in chipmaking and enhance competition against industry rivals such as AMD, Nvidia and Samsung.