The German city of Magdeburg in the regional state of Saxony-Anhalt has beaten out competition from around Europe and attracted a landmark investment from the world's largest maker of semiconductors.
Intel will initially spend EUR 17 billion on its new location but could put around EUR 80 billion in its European operations, if it builds all of the construction facilities – or "fabs" – that are planned. By comparison, the gigafactory carmaker Tesla is building outside Berlin is worth EUR 5.8 billion.
Supply chain shortages have highlighted the desirability of self-producing crucial commodities, an issue EU member states have been keen to address. In 2021, the bloc agreed upon a EUR 145 billion "European initiative on processors and semiconductor technologies."
Magdeburg, which is located in the former Communist eastern part of Germany, has the advantage of moderate property prices and easy access to Germany's two largest cities Hamburg and Berlin as well major automotive production sites. But those weren't the only selling points.
The size of the European market was another major positive for Intel in making an investment of epochal dimensions at the heart of Europe.
Intel Germany VP and Managing Director Christin Eisenschmid
Our cooperation with Germany Trade & Invest played a decisive role during the entire decision process: Together, we were able to get this huge project off the ground and lay the foundation for a strong European answer on the global chip shortage. We are thankful for the productive dialogue and look forward to our major expansion in Germany.
