Chip manufacturer Intel has selected Magdeburg in the German state of Saxony-Anhalt as the location for a European wafer fab, according to state-owned broadcaster Mitteldeutscher Rundfunk (MDR).
Intel had been considering other locations in Germany – including Dresden and Penzing near Munich (see Intel in talks with Bavaria over wafer fab location). France, Italy and Ireland had also been touted as possible destinations (see Intel’s European mega-fab could go to Galway, Ireland).
Magdeburg does not have the same technical ecosystem as Dresden, but it also does not have multiple established wafer fabs that would be competition for the locally produced university talent.
Intel has been shopping around to try and find the best deal as it wants substantial financial support in return for locating the fab (see Intel seeks $10 billion subsidy for ‘EuroFab’).
The total investment for the new fab is expected to be double-digit billions of euros creating about 1,000 jobs.
The move by Intel is a response to the calls for investment from the European Commission. To support this the Commission has proposed the European Chips Act saying that has said it wants to see Europe attain a 20 percent share of global chip production by 2030 (see European Chips Act could include powers for EU control).
This would be an increase from somewhere around 5 to 7 percent now (see Europe makes just 5% of global IC wafers, says Knometa).
The Magdeburg decision is expected to be announced on Friday of next week, MDR said.
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