Intel (Magma Images Photo)
Intel announced today (Tuesday) a huge move, in which it claims to invest up to 80 billion euros (about 88 billion dollars or 288 billion shekels) in the establishment of a network of chip development and manufacturing centers in Europe in the next decade.
The two key parts of Intel’s huge project will include a € 17 billion investment in a pair of giant factories in the German city of Magdeburg, and a € 12 billion investment to double the company’s existing plant in Ireland. In addition, the company will build an R&D center with 1,000 employees in France, alongside other development and service centers in Italy, Ireland and Spain. A total of € 33 billion will be invested in the initial wave, but within a decade the company expects to reach a huge investment of 80 billion euros.
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The pair of factories in Germany are expected to employ 7,000 construction workers between the start of work in 2023 and between the completion of construction and the start of production in 2027, after which the factories are expected to employ about 3,000 workers on a regular basis. The plants produced chips from Intel, but also chips under contract for other companies, as part of the CEO’s IDM 2.0 strategy, Patrick (“Pat”) Glasinger, who said in a special broadcast announcing the project that “currently, 80% of the chips are made in Asia. “Our pan-European flagship investment provides a solution to the global need for a more balanced and durable supply chain.”
This huge investment joins other similar investments that Intel announced in the second half of last year, since Glasinger was named CEO: the company is investing $ 20 billion in Arizona, and another $ 20 billion in what it claims will be the largest chip plant on the planet in Ohio.
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However, Intel also revealed that it is continuing its old strategy of announcing huge investments in order to win huge grants: At the announcement event, Glasinger hinted that Intel expects the German government, and other European governments, to expedite building permits and other procedures for the investment, and even give it grants. Various – from tax exemptions to government grants. He also hosted the commission’s president, Ursula von der Lane, in a wink to a recent law passed by the commission and promises huge grants, totaling up to $ 43 billion by 2030, to companies that will help Europe become “independent” in chips. It should be noted that Intel has been using this method for many years, especially in Israel and Ireland – it puts them on the battlefield to fight for the amount of benefits it will be given to set up advanced plants, even though in the last decade none of those promises have been implemented. In two to three generations compared to the competition, which has caused Intel to recently lose significant market share to its smaller competitor, AMD.
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