Intel expands Magdeburg chip plan beyond €30bn

Intel and Germany signed a revised letter of intent on 19 June for two Magdeburg chip factories, with expected investment above €30 billion. Intel’s announcement puts production at the first factory four to five years after European Commission approval of the incentive package.

Photo: JF10, “Intel HQ” (Santa Clara, 2008), CC BY 2.0. Resized and cropped. Historical Santa Clara photograph, not Magdeburg or the June 2023 signing.

The project would serve Intel and foundry customers, using more advanced Angstrom-era technology than originally envisaged. Intel bought the land in November 2022. The production clock starts with approval, rather than the signing date.

Germany’s economy ministry confirms that Intel’s aid still needs Commission approval. The same release discusses 31 German microelectronics projects covered by a separate 8 June decision under the Important Project of Common European Interest programme. Approval of those projects doesn’t establish approval of Magdeburg.

Poland would process the wafers

Intel’s 16 June Polish announcement proposed up to $4.6 billion for assembly and testing near Wrocław. Design and planning would begin immediately, while construction depends on Commission approval.

That facility would receive completed wafers, separate chips, package them and test the products. It could also accept individual chips from other foundries. The German factories would perform wafer fabrication, alongside Intel’s existing Irish production.

Poland’s target addresses anticipated demand by 2027. It doesn’t establish a shared opening date for the German and Polish facilities.