Intel and the German federal government have signed a revised letter of intent for Intel’s planned wafer fabrication site in Magdeburg, the capital of Saxony Anhalt state in Germany.
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The agreement encompasses Intel’s expanded investment in the site, now expected to be more than 30 billion euros for two first of a kind semiconductor facilities (also known as “fabsâ€) in Europe, along with increased government support that includes incentives, reflecting the expanded scope and change in economic conditions since the site was first announced.
Intel acquired the land for the project in November 2022, and the first facility is expected to enter production in four to five years following the European Commission’s approval of the incentive package.
Given the current timeline and scale of the investment, Intel plans to deploy more advanced Angstrom era technology in the facilities than originally envisioned. The Magdeburg site will serve Intel products and Intel Foundry Services customers.
Intel’s investment will drive significant economic benefits not only in Magdeburg and Saxony Anhalt, but across the country and throughout the European Union.
Along with Intel’s existing wafer fabrication facility in Ireland and its recently announced assembly and test facility in Poland, the new wafer fabrication site in Magdeburg will create a first of its kind, leading edge end to end semiconductor manufacturing value chain in Europe, serving European customers and helping to fulfill the EU’s ambitions for a more resilient semiconductor supply chain.
The Silicon Junction will serve as the connection point for other centers of innovation and manufacturing across the country and region, promoting the development of a broad ecosystem of suppliers and companies across the technology industry.
The site is expected to create 7,000 construction jobs over the course of the first phase of the build, approximately 3,000 permanent high tech jobs at Intel and tens of thousands of additional jobs across the industry ecosystem. ■