Intel picks Magdeburg in Germany for new European chip factory

BERLIN, Feb 27 (Reuters) – Intel INTC.O has chosen the east German metropolis of Magdeburg as the location for a brand new multibillion-euro European chip manufacturing unit and can make the choice public on March 4, an individual conversant in matter advised Reuters.

The corporate stated in September it may make investments as a lot as $95 billion in Europe over the following decade and announce the areas of two main new European chip fabrication crops by the top of 2021, however no announcement has been made.

Germany was prime of the record of potential areas, with the native governments of Penzing in Bavaria and Magdeburg and Dresden in japanese Germany attempting to tempt the U.S. firm. (Full Story)

Analysts had stated Intel could possibly be ready for the introduction of recent laws earlier than deciding on a European location. The European Chips Act goals to scale back the continent’s dependence on Asian suppliers for superior semiconductors by subsidising the native improvement of huge chip factories. (Full Story)

Chief Government Patrick Gelsinger travelled to Europe final 12 months. The federal government subsidies, stability and availability of expert staff had been components that inspired the CEO to decide on Germany for the brand new plant, the supply stated.

Germany can be house to most of the world’s largest automakers which have been notably badly hit by the worldwide chip scarcity.

The small metropolis of Magdeburg is the capital of Saxony-Anhalt state. It hosts the Otto von Guericke College and has area for a brand new plant within the Eulenberg industrial space within the southwest.

It isn’t clear when manufacturing may begin.

Intel, which in January introduced plans to construct a $20 billion U.S. chipmaking complicated in Ohio, is prone to take into account France and Italy for brand new areas in Europe because it plans to construct a design centre and packaging plant, the supply added.

Reporting by Berlin, Prague, Madrid, Copenhagen and Moscow bureaus; Enhancing by Emelia Sithole-Matarise and Raissa Kasolowsky

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