Intel signed a series of contracts to build semiconductor fabs in Germany, Israel and Poland, a groundbreaking move that reaffirms its commitment to Europe. These strategic investments, totaling $63 billion, demonstrate Intel’s commitment to strengthening its global infrastructure and consolidating its position in the semiconductor industry.

The largest investment is a $33 billion agreement to build semiconductor fabs in Germany. Intel’s site near Magdeburg will house at least two fabs using more advanced chip manufacturing technology than originally planned. While details of the process technology have not yet been disclosed, Intel said it will be from the angstrom era and include advanced technologies such as 18A and 20A. The move puts Intel at the forefront of chip manufacturing, promising innovative solutions for the ever-evolving digital landscape.

A €10 billion government subsidy has been secured to support this ambitious project, which is subject to EU approval. The partnership between Intel and Germany is aimed at creating an environment conducive to technological advancement and economic growth. The first plant should be operational within the next 4-5 years, marking an important milestone in Germany’s quest for semiconductor excellence.

At the same time, a €4.6 billion semiconductor assembly and test plant is planned for Poland. The facility, located in Wroclaw, will employ 2,000 people and is scheduled for completion in 2027. The planning and design phase will begin immediately, and construction will commence after authorization from the European Commission. This investment not only signals Poland’s emergence as a major player in the semiconductor industry, but also confirms Intel’s commitment to diversifying its presence in Europe.

Intel’s ambitious European endeavors are fully aligned with the European Union’s desire to establish itself as the dominant force in semiconductor manufacturing and ensure a stable supply of critical electronic components. In addition to investments in Germany and Poland, Intel has announced plans for a research, development and design center in France, as well as lithography and end-of-line manufacturing facilities in Ireland, Italy, Poland, Spain and elsewhere. These initiatives demonstrate Intel’s continued commitment to fostering innovation and driving economic growth across the continent.

Notably, Intel’s expansion extends beyond continental Europe, with the company investing $25 billion to build a new plant in Israel. The company’s plans to expand production in Kiryat Gat have been enthusiastically received by Prime Minister Benjamin Netanyahu, who expects thousands of jobs to be created. The plant, which will begin operations in 2027, is in line with Israel’s vision of developing a thriving technology ecosystem and serves as a testament to Intel’s continued commitment to global partnerships.

As part of the agreement, Intel’s tax rate in Israel will be raised to 7.5% from the current 5%, signaling the mutually beneficial nature of the partnership. This strategic move not only strengthens Intel’s position as a major player in Israel’s technology landscape, but also reaffirms the company’s commitment to building strong ties with governments around the world.

Intel’s large-scale investments in Europe and Israel represent a pivotal moment in the company’s history. With its advanced manufacturing facilities and unwavering commitment to innovation, Intel is poised to shape the future of the semiconductor industry. As these projects come to fruition in the coming years, they will undoubtedly create a ripple effect, contributing to economic growth, technological advancement and job creation in Europe and Israel.