Intel invests in semiconductor manufacturing in Germany, Poland and Israel
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Intel is investing €30 billion in the construction of semiconductor plants in Germany, and the German authorities will allocate another €10 billion for the project. This is another major investment by Intel over the past week – the company previously announced multi-billion investments in the construction of factories in Poland and Israel.
Today, June 19, German Chancellor Olaf Scholz and Intel CEO Pat Gelsinger signed an agreement that the company will increase its investment in the construction of chip factories in Magdeburg, and the German authorities will increase support for this project. As writes Bloombergthe parties agreed that Germany will provide the company with a subsidy of €10 billion. Intel previously announced that it intends to spend €17 billion on the construction of a plant in Magdeburg. Now the company is going to build two plants and estimates an investment of €30 billion. The first plant should be launched in four or five years.
The discussion of the subsidy went on for several months – first of all, at the center of the negotiations was the specific amount that the German government was ready to allocate.
According to media reports, initially it was about €6.8 billion, but Intel insisted on increasing the subsidy, explaining this by rising prices for energy and building materials.
Part of the amount will be provided directly, part – through a reduction in selling prices for energy for this project. Intel shares rose 1.5% on Monday. Since the beginning of the year, they have shown an increase of 38%.
Other companies are also developing chip production in the east of Germany. In May, Germany’s Infineon announced plans to build a €5 billion semiconductor manufacturing plant in Dresden. In the same month, it became known that the world’s largest semiconductor manufacturer, Taiwanese company TSMC, is considering investing €10 billion in its own plant, also in Dresden. . According to media reports, the final decision on its construction will not be made until August.
Intel has recently been actively investing in the expansion of its production. This is happening at a time when the United States and Europe are trying to develop the production of chips in their countries in order to compete in this area with manufacturers from Asia, and are attracting Western corporations for this. Last year, the United States passed a law CHIPS for America Act (“The Act to Create Beneficial Incentives for America’s Semiconductor Manufacturing”), according to which the US government allocates $ 52.7 billion for the development of this area. In the current year, the EU adopted its own law to support the semiconductor industry – the European Chips Act – according to which it is planned to invest €43 billion in their development and production.
In 2021, Intel announced its intention to invest €80 billion in the development and production of chips in Europe over the next decade. Since then, the company has already announced the construction of factories or research centers in France, Italy, Spain, and others. Last week, Intel reported about plans to invest up to $4.6 billion in the construction of a semiconductor plant near the Polish city of Wroclaw.
On Sunday became knownthat the company intends to invest $25 billion to build a new chip manufacturing plant in Israel. The company also actively invests in the United States. For example, last year Intel said it would invest up to $100 billion to build a huge semiconductor manufacturing facility in Ohio that could become the largest plant of its kind in the world.
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