Intel will spend more than $32 billion to open two high-end microchip fabrication facilities in Magdeburg, Germany, in an expansion of the chipmaking giant’s plans for European growth.In an announcement on Monday, Intel likewise said that the facilities would utilize its more advanced Angstrom production procedure, which is used to make sub-nanometer chips. Making use of this technology has always remained in the plans for the Magdeburg website, for which Intel got the land in November 2022. That preliminary plan, announced in March 2022, earmarked$18.55 billion for the site.The company stated that the facility will enter production in 4 to 5 years,”following the European Commission’s approval of the incentive bundle.”About 30% of the costs for the Magdeburg center (roughly$5.5 billion)will be covered by federal government subsidies, according to a report from Bloomberg at the time of the deal’s preliminary announcement. That figure is set to increase to nearly$11 billion as of the other day’s announcement.The expanded plans for the German manufacturing website belong to Intel’s bigger method to find considerable facilities in the EU. A further$13 billion is allocated for a website in Leixlip, Ireland, which should bring total financial investment because nation to nearly$33 billion, together with an R&D hub in France that Intel said must create more than 1,000 jobs. A brand-new back-end manufacturing center is prepared for Italy, at a cost of practically$5 billion in financial investment, as well as a supercomputing center in Barcelona, Spain, and increased laboratory space in Poland.Germany, like most big countries, has actually been significantly eager to bolster domestic semiconductor production in the last few years, as the ongoing trade conflict in between China and the US continues to incentivize moves far from suppliers in East Asia. Numerous nations have carried out guidelines comparable to the United States’CHIPS and Science Act, which offers incentives
to chipmakers wanting to establish brand-new production.That trade disagreement has proved to be an issue for CIOs, who need to evaluate their supply chains for reliance on Chinese semiconductors. It’s a particularly intense concern for services preparing to use AI technology, as utilizing Alibaba cloud for training or AI accelerator chips from Horizon might quickly become a non-option. Copyright © 2023 IDG Communications, Inc. Source
