Intel is building a new €17 billion semiconductor manufacturing hub in Germany

Image: Intel

A new chip manufacturing site in Germany and a 12 billion expansion of its European manufacturing sites are part of a massive new investment by Intel.

The company is building a new R&D and design hub in France, and plans to invest in additional areas in Ireland, Italy, Poland, and Spain for manufacturing, foundry services, and research. Intel is planning to invest over 33 billion in its initial wave of European R&D and manufacturing, as part of a total of 80 billion invested in the EU over the next decade.

Construction on the new German site will start in the first half of the next decade, ahead of the planned production in 2027. They will produce Intel's next-gen products, which would include the upcoming Intel 20A and Intel 18A nodes. The goal is for the site to help produce chips for Intel customers, too. There will be 7,000 new jobs in Germany, along with 3,000 permanent jobs at Intel once the new Fab starts production in a few years.

The expansion of Ireland aims to double Intel's manufacturing space at the company's existing site and bring the upcoming Intel 4 node to its European manufacturing sites.

The new European investment is part of a strategy introduced by CEO Pat Gelsinger a year ago. Since then, Intel has announced a massive $20 billion investment into its existing Arizona sites, along with a similarly large $20 billion investment for a new Ohio site that Intel claims will be the largest Silicon manufacturing location on the planet.

Investment in manufacturing sites is a hot topic for the Silicon industry, as supply shortages for semiconductors continue to wreak havoc with supply chains, product availability, and prices for everything from PlayStation 5 consoles to cars. It's not just Intel that has announced plans for new chip production sites. TSMC and SAMSUNG have also announced plans for new chip production sites. It will likely be some time before the impact of the new investments is felt.