TSMC, one of the world’s largest chip manufacturers, said that it would not open a factory in Europe. Thereupon, the factory move for Germany came from Intel. Intel will receive land and financial support from Germany for Europe’s largest chip factory.
Intel and Germany agreed for the huge chip factory
According to the news in The Register, Intel and Germany finally managed to reach an agreement for the huge chip factory. The chip manufacturing facility, which is planned to be established in Magdeburg, Germany, will cost $19 billion. However, according to the statement in the German Bundestag, 40 percent ($7.3 billion) of the factory will be subsidized.
Intel, which is still waiting for a subsidy from the US Congress for the chip factory to be established in two separate regions of the USA (Ohio and Arizona), managed to receive financial aid of 7.3 billion dollars from Europe. The statement on the subject was made by Martin Kröber, Magdeburg’s representative in the Bundestag.
According to the details shared by Martin Kröber, $2.5 billion support has already been prepared for the factory that Intel will establish in Germany. But the government wants to subsidize more than the 2022 budget and offer $7.3 billion in support by 2027.
Construction will begin in 2023 for the chip plant to be established in Magdeburg. The facility, whose construction will take approximately four years, is aimed to be the size of two football fields. Intel is planned to employ 3,000 people in the region.
In addition to the German factory announced in March, Intel has some pretty big plans for Europe. In a statement given by Intel CEO Pat Gelsinger; It has been announced that an R&D and design center will be established in France, and a production and chip packaging factory will be established in Poland, Spain and Italy. The cost of all these investments will be 36 billion dollars.
While Intel is expanding its European operations, rival TSMC follows the opposite policy. TSMC, which produces chips for companies such as Apple, AMD and Nvidia, stated that it does not have concrete plans for Europe. Europe has to rely less on the company’s operations, according to TSMC President Mark Liu.
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