Intel Corporation (NASDAQ:INTC) said it has signed a revised letter of intent with the German federal government for its planned leading-edge wafer fabrication site at ‘Silicon Junction’ in Magdeburg, the capital of the Saxony-Anhalt state.
The company said in a statement that the agreement includes its expanded investment in the site, now expected to be more than €30 billion ($32,8 billion) for two first-of-a-kind semiconductor facilities in Europe.
Increased government support for the project includes incentives, reflecting the expanded scope and change in economic conditions since the site was first announced, it added.
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.
The investments "create the foundation for a next-generation European chip ecosystem,” helping the European Union advance its goal of a more resilient semiconductor supply chain, the company said.
“Building the ‘Silicon Junction’ in Magdeburg is a critical part of our strategy for Intel’s growth. Combined with last week’s announcement of our investment in Wrocław, Poland, and the Ireland sites we already operate at scale, this creates a capacity corridor from wafers to complete packaged products that is unrivaled and a major step toward a balanced and resilient supply chain for Europe,” Intel CEO Pat Gelsinger said in a statement.
“We’re grateful to the German federal government, Chancellor Olaf Scholz and the government of Saxony-Anhalt for their partnership and shared commitment to fulfilling the vision of a vibrant, sustainable, leading-edge semiconductor industry in Germany and the EU.”
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.
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