Intel announced a massive new investment in its chip production across the European Union, including plans to expand its existing presence, construct new fabs, and bolster its research and development in the region.
Intel said it will spend a total of €33 billion during its first phase of EU expansions. This will include €12 billion spent on enhancing its existing fab in Ireland and €17 billion put toward building a pair of completely new production facilities in Magdeburg, Germany.
The remainder of the €33 billion "first phase" investment will help expand Intel's R&D and design hub in France and grow its manufacturing, foundry, and research efforts across Italy, Poland, and Spain.
Intel plans to begin construction on the German fabs during the first half of 2023, with production at the location expected to begin around the end of 2027. The new site's goal will be to produce Intel's new Angstrom-era transistor technologies. The company said the German fabs will serve "the needs of both foundry customers and Intel for Europe and globally as part of the company's IDM (integrated device manufacturer) 2.0 strategy."
Construction at the new site is expected to create as many as 7,000 new jobs in the Magdeburg region, with the fab itself creating 3,000 permanent jobs once it's completed.
Intel's ongoing IDM 2.0 strategy is the same directive that has seen the company reveal plans for a domestic expansion in Arizona, as well as its $20 billion investment in a new mega-fab located in Ohio.
According to Intel, its ambitions across the EU are much wider. This €33 billion phase is just the first leg of an €80 billion investment it plans to make over the coming decade across its "entire semiconductor value chain."
Intel's costly efforts to expand its research and production capabilities are almost certainly being driven by ongoing global chip shortages that continue to negatively impact everything from the PC to automotive and medical device industries.