Key Points
- Intel’s Revised Agreement: Intel has signed a revised letter of intent with the German federal government for its wafer fabrication site in Magdeburg, Germany.
- Strengthening European Semiconductor Supply Chain: The Magdeburg site, along with Intel’s existing facilities in Ireland and its recently announced facility in Poland, will create a comprehensive end-to-end semiconductor manufacturing value chain in Europe.
- Job Creation and Sustainability: The Silicon Junction site in Magdeburg is expected to generate significant economic benefits, including the creation of approximately 3,000 permanent high-tech jobs at Intel.
Intel has announced on Monday that it has signed in Berlin with the German federal government a revised letter of intent for Intel’s planned wafer fabrication site in Magdeburg, Germany. The agreement involves Intel’s increased investment of over 30 billion euros for two semiconductor facilities in Europe, along with enhanced government support and incentives. The project’s timeline predicts the first facility to begin production in four to five years, pending European Commission approval. Intel intends to deploy more advanced technology than initially planned, and the Magdeburg site will cater to Intel products and Intel Foundry Services customers.
Intel CEO Pat Gelsinger emphasized the significance of the Magdeburg project, referring to it as a vital component of Intel’s growth strategy. Gelsinger expressed gratitude to the German federal government, Chancellor Olaf Scholz, and the government of Saxony-Anhalt for their partnership and shared commitment to a thriving semiconductor industry in Germany and the EU. Chancellor Scholz regarded the agreement as a crucial step for Germany as a high-tech production hub and highlighted the investment’s role in enhancing the country’s technological capabilities and microchip ecosystem.
The investment by Intel is the largest foreign direct investment in German history, according to Chancellor Scholz. Federal Minister for Economic Affairs and Climate Action Robert Habeck also hailed the agreement as a milestone, emphasizing the positive impact it will have on innovation, job creation, and competitiveness in Germany. Intel’s investment will not only benefit Magdeburg and Saxony-Anhalt but also contribute to the European Union’s semiconductor supply chain ambitions.
Siemens AG‘s President and CEO, Roland Busch, expressed congratulations to Intel and highlighted Siemens’ collaboration with Intel in accelerating the semiconductor ecosystem in Europe. The Silicon Junction site will serve as a connection point for innovation and manufacturing centers, fostering the development of a diverse supplier ecosystem in the technology industry. The construction of the site is expected to generate 7,000 jobs in the initial phase and around 3,000 permanent high-tech positions at Intel, with numerous additional jobs across the industry.
Intel is committed to aligning the Silicon Junction development with its 2030 sustainability goals, aiming to achieve net positive water use, power its manufacturing operations with 100% renewable energy, and eliminate waste sent to landfills. Germany’s renowned universities, technical training programs, and history of innovation create a conducive environment for Intel’s investment. The company plans to collaborate closely with local educational institutions, research organizations, and training programs to cultivate a skilled workforce and foster the growth of innovators and entrepreneurs who will contribute to Europe’s digital and green future.
About Intel
Intel Corp (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, they continuously work to advance the design and manufacturing of semiconductors to help address their customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, they unleash the potential of data to transform business and society for the better. Intel is engaged in designing and manufacturing products and technologies. The Company’s segments include Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX), Mobileye, Accelerated Computing Systems and Graphics (AXG), and Intel Foundry Services (IFS). To learn more about Intel’s innovations, go to newsroom.intel.com and intel.com.
© Intel Corporation. Intel, the Intel logo and other Intel marks are trademarks of Intel Corporation or its subsidiaries. Other names and brands may be claimed as the property of others.
About Siemens
Siemens AG (XETRA: SIE-DE) is a Germany-based technology company focused on industry, infrastructure, transport, healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation as well as advanced healthcare, the company creates technology with purpose adding real value for customers. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them to transform the everyday for billions of people.
It operates through following segments: Digital Industries, which offer products and system solutions for automation used in discrete and process industries; Smart Infrastructure, which supplies and connects energy systems and building technologies; Mobility, which combines all businesses in the area of passenger and freight transportation; Healthcare, which supplies technology to the healthcare industry and engages in diagnostic imaging and laboratory diagnostics; Energy, through Siemens Energy, a global leader in the transmission and generation of electrical power; Financial Services (SFS), which offers leasing solutions and equipment, project and structured financing in the form of debt and equity investments. To learn more, visit www.siemens.com
Credits: Photo from intel.com
