Intel and the German federal government have reached an agreement to expand the scope of Intel’s wafer fabrication site in Magdeburg, Germany. The revised letter of intent outlines Intel’s increased investment in the site, totaling over 30 billion euros, for the construction of two cutting-edge semiconductor facilities, also known as “fabs.” The agreement also includes enhanced government support, including incentives, to reflect the project’s expanded scale and changing economic conditions since its initial announcement.
Intel acquired the land for the Magdeburg project in November 2022, and the first facility is expected to commence production within four to five years, subject to approval from the European Commission regarding the incentive package. With the revised plans, Intel intends to deploy more advanced Angstrom-era technology in the facilities than originally envisioned. The Magdeburg site will serve both Intel’s products and its customers through Intel Foundry Services.
Pat Gelsinger, CEO of Intel, emphasized the significance of the Magdeburg project for the company’s growth strategy. He described it as a crucial step towards establishing a balanced and resilient supply chain for Europe, connecting the sites in Magdeburg and the recently announced investment in Wrocław, Poland, with Intel’s existing facilities in Ireland. Gelsinger expressed gratitude to the German federal government, Chancellor Olaf Scholz, and the government of Saxony-Anhalt for their partnership and commitment to fostering a vibrant and sustainable semiconductor industry in Germany and the European Union.
Chancellor Scholz hailed the agreement as an important milestone for Germany as a high-tech production location, enhancing the country’s technological capabilities and expanding its capacities for microchip ecosystem development and production. Scholz also noted that Intel’s investment in Magdeburg represents the largest foreign direct investment in German history, contributing to Germany’s resilience and bolstering the semiconductor supply chain.
Intel’s substantial investment will not only benefit Magdeburg and Saxony-Anhalt but also have a positive economic impact across Germany and the European Union. Together with Intel’s existing wafer fabrication facility in Ireland and the newly announced assembly and test facility in Poland, the Magdeburg site will establish a comprehensive end-to-end semiconductor manufacturing value chain in Europe, serving European customers and supporting the EU’s ambition for a more resilient semiconductor supply chain.
Siemens, a key technology partner for Intel, expressed its pride in collaborating with Intel to accelerate the semiconductor ecosystem in Europe. Siemens’ President and CEO, Roland Busch, congratulated Intel on its expansion in Germany and highlighted the company’s commitment to supporting manufacturers in scaling their operations and building resilient supply chains.
The Magdeburg site, known as the Silicon Junction, will not only serve as a hub of innovation and manufacturing but also foster the growth of a diverse ecosystem of suppliers and technology companies throughout Germany and the region. The construction of the site’s first phase is expected to create 7,000 jobs, and approximately 3,000 permanent high-tech positions will be available at Intel, with tens of thousands of additional jobs generated across the industry ecosystem.
Intel remains dedicated to sustainability and aims to align the development of the Silicon Junction with its 2030 sustainability goals. These goals include achieving net positive water use through water conservation, recycling, and supporting local water projects that restore more freshwater than Intel’s facilities consume. Furthermore, Intel is committed to powering its global manufacturing operations with 100% renewable energy and achieving zero waste to landfills.
Germany’s renowned universities, technical training programs, and a tradition of innovation make it an ideal location for Intel’s expansion. The company plans to collaborate closely with local educational institutions, research organizations, and training programs to develop a diverse workforce that will contribute to the success of the Magdeburg site and drive Europe’s digital and green future forward.
