Intel to Invest Over $33 Billion in Chip-making Plants in Germany
Via The Hill
Summary
In June 2023, Intel CEO Pat Gelsinger and German Chancellor Olaf Scholz signed a landmark agreement for Intel to invest more than 30 billion euros — approximately $33 billion — in two semiconductor fabrication plants in Magdeburg, Germany. The German government pledged roughly 10 billion euros in subsidies, covering approximately one third of the total investment. Scholz hailed it as the largest foreign investment in German history.
The deal was part of Intel's broader strategy to rebuild its manufacturing capabilities and compete with Taiwan's TSMC for global chip dominance. The Magdeburg facilities, nicknamed "Silicon Junction," are expected to begin production in four to five years, fitting into Europe's larger push to reduce dependence on Asian chip manufacturing.
