Intel, Germany Strike Deal to Invest More Than EUR30 Billion on Chip Facilities

   By Mauro Orru 
 

Intel said it had reached an agreement with Germany to invest more than 30 billion euros ($32.83 billion) in two semiconductor facilities in the country, expanding its European production footprint at a time when the European Union is seeking to become more self-sufficient in chip production.

The chip maker said Monday that it had signed a revised letter of intent for its planned chip manufacturing site in Magdeburg, in a deal that includes increased support from the German government in the form of incentives.

Dubbed Silicon Junction, the site in Magdeburg will consist of two semiconductor facilities, the first of which is expected to start production in four to five years following approval of the incentive package from the European Commission, the European Union's executive arm.

The announcement comes three days after Intel set out plans to build a new semiconductor assembly and test facility in Poland for an investment of up to $4.6 billion, building its presence in the country, which already hosts its largest research and development facility in Europe with nearly 4,000 workers.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

June 19, 2023 09:37 ET (13:37 GMT)

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