Intel picks Magdeburg in Germany for new European chip factory
Intel has chosen the east German city of Magdeburg as the site for a new multibillion-euro European chip factory and will make the decision public on March 4, a person familiar with matter told Reuters.
The company said in September it could invest as much as $95 billion in Europe over the next decade and announce the locations of two major new European chip fabrication plants by the end of 2021, but no announcement has been made.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Germany was top of the list of potential locations, with the local governments of Penzing in Bavaria and Magdeburg and Dresden in eastern Germany trying to tempt the U.S. company.
Intel Processor Core i5 2500K (iStock / iStock)
Analysts had said Intel could be waiting for the introduction of new legislation before deciding on a European location. The European Chips Act aims to reduce the continent's dependence on Asian suppliers for advanced semiconductors by subsidizing the local development of large chip factories.
INTEL TO INVEST AT LEAST $20 BILLION IN OHIO CHIP-MAKING FACILITY
Chief Executive Patrick Gelsinger traveled to Europe last year. The government subsidies, stability and availability of skilled workers were factors that encouraged the CEO to choose Germany for the new plant, the source said.
Intel CEO Pat Gelsinger (Fox Business Travel)
Germany is also home to many of the world's biggest automakers which have been particularly badly hit by the global chip shortage.
INTEL EARNINGS DROP, REVENUE EDGES HIGHER
The small city of Magdeburg is the capital of Saxony-Anhalt state. It hosts the Otto von Guericke University and has space for a new plant in the Eulenberg industrial area in the southwest.
It is not clear when production could start.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| INTC | INTEL CORP. | 24.84 | +0.49 | +2.01% |
Intel, which in January announced plans to build a $20 billion U.S. chipmaking complex in Ohio, is likely to consider France and Italy for new locations in Europe as it plans to build a design center and packaging plant, the source added.
(Reporting by Nadine SchimroszikWriting by Riham AlkousaaEditing by Sabine Wollrab and Mark Potter)