Intel to spend tens of billions of dollars on new plants in Europe
Investing.com | Author Senad Karaahmetovic
Published Jun 20, 2023 09:04AM ET
Intel (INTC) to spend tens of billions of dollars on new plants in Europe
Intel (NASDAQ:INTC) said it will spend more than €30 billion ($33B) to build two chip-making plants in Magdeburg, Germany.
The deal represents the single biggest foreign investment in Germany, whose government will provide subsidies worth nearly €10B.
"[The] agreement is an important step for Germany as a high-tech production location – and for our resilience," Chancellor Olaf Scholz said after Monday's signing ceremony.
"With this investment, we are catching up technologically with the world's best and expanding our own capacities for the ecosystem development and production of microchips."
The deal with Germany’s government comes just a few days after Intel unveiled plans to build a $4.6B chip plant in Poland. On Sunday, Intel said it will spend another $35B to build a factory in Israel.
“We’re grateful to the German federal government, Chancellor Olaf Scholz and the government of Saxony-Anhalt for their partnership and shared commitment to fulfilling the vision of a vibrant, sustainable, leading-edge semiconductor industry in Germany and the EU,” said Intel’s CEO Pat Gelsinger.
Intel shares are up about 1% in pre-market Tuesday.
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