Intel plans to spend over $33 billion to establish two chip factories in Magdeburg, Germany, as part of its efforts to expand in Europe. This deal was praised by German Chancellor Olaf Scholz, who described it as the largest foreign investment in Germany. Following the signing of the agreement, Scholz stated, "Today's agreement is an important step for Germany as a site for advanced technology production. With this investment, we will keep pace with the best technologies in the world and enhance our capabilities to support the development of the ecosystem and the production of microchips."
A knowledgeable source revealed that "Berlin approved support valued at around ten billion euros for the American company Intel to build chip factories in the eastern city, after initially offering only 6.8 billion euros." Intel's CEO Pat Gelsinger expressed gratitude to the government and the state of Saxony-Anhalt, where Magdeburg is located, "for realizing a vision for a vibrant, sustainable, and leading semiconductor industry in Germany and the European Union."
Under Gelsinger's leadership, Intel has invested billions to build factories on three continents to regain its dominance in the chip industry and enhance its competitiveness against AMD, Nvidia, and Samsung. Intel expects the first factory to be operational four to five years after the European Commission approves the support package.
