Intel CEO Pat Gelsinger announced an ambitious pan-Europe plan for chip research and manufacturing on Tuesday that calls for an initial Intel investment of 33 billion euros, about $36 billion in U.S. dollars.
He described the overall project as a means of balancing the global chip supply chain as well as increasing supply chain resiliency for Europe on the heels of the EU Chips Act launched in February.
“We are building world-changing tech that improves the life of every person on the planet,” Gelsinger said in a livestream announcement. “We have big ambitions.”
Intel’s initial investment of 33 billion euros could mushroom to 80 billion euros over the next 10 years.
An initial 17 billion euros will go for a two chip fabs in Magdeburg, Germany, to be dubbed “Silicon Junction” for advanced chipmaking. The new fabs would open and online in 2027 with a construction start in 2023, pending European Commission approval. The chips developed there will use advanced Angstrom-era transistors. About 7,000 construction jobs will be created with 3,000 permanent high-tech jobs at Intel.
Gelsinger also said Intel will spend an added 12 billion euros in Leixlip, Ireland, doubling manufacturing space there for Intel 4 process technology. Intel’s total investment in Ireland is more than 30 billion euros.
Also, Intel and Italy have begun negotiations for a new back-end manufacturing facility with a potential investment of 4.5 billion euros, creating 1,500 Intel jobs, with operations starting between 2025 and 2027. Gelsinger described this new facility will be in addition to foundry growth opportunities Intel expects to pursue in Italy based on the planned $5.4 billion Intel acquisition of Tower Semiconductor. Tower has a partnership with STMicroelectronics, which operates a fab in Agrate Brianza, Italy.
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In addition, Intel plans to set up its main European foundry design center in France, offering design services to French, European and global industry partners and customers. Near Plateau de Saclay, France, Intel’s new European R&D hub will create 1,000 high tech jobs at Intel with 450 jobs by the end of 2024. It will be the European headquarters for high performance computing and AI design used in automotive, life sciences and more.
In Gdansk, Poland, Intel is increasing lab space by 50% in 2023 for work in deep neural networks, audio, graphics, data center and cloud computing. Gelsinger also mentioned work in Barcelona, Spain, to collaborate with the Supercomputer Center there on development of a zettascale architecture. Joint labs are planned in Barcelona, but no timeline or cost was announced.
Intel has operated outposts in Europe for 30 years and currently employs about 10,000 people there out of 121,000 workers globally. Over the past two years, Intel has spent more than 10 billion euros with European suppliers, a number it expects to double by 2026.
“We are committed to playing an essential role in Europe’s chip future,” Gelsinger said.