Intel announces another megafab as chipmaker expands EU footprint


Intel announced another string of investments the other day, this time concentrated on shoring up its chipmaking efforts in Europe. The company has actually dedicated $36 billion up until now, and if it finishes all the tasks its considering, itll spend almost $88 billion throughout six countries.
The focal point of the financial investment is a megafab in Magdeburg, Germany, some 70 miles west of Berlin. Intel intends to break ground next year on two new fabs and begin etching wafers in 2027 utilizing the businesss “most innovative, Angstrom-era transistor technologies.” Which ones those will be will mainly depend upon how successful Intels aggressive R&D efforts are over the next couple of years. Overall costs for this part of the project: $18.5 billion. The brand-new fabs will include capacity to feed its foundry ambitions, which Intel CEO Pat Gelsinger is betting will help the business gain back the cutting edge.
Next up are Intels existing fabs in Leixlip, Ireland. There, the semiconductor manufacturer is investing another $13 billion to upgrade and expand the factories to accommodate its Intel 4 process (previously called 7 nm). The task is currently underway and must begin production in 2023.
In other places, the company is adding research study and advancement centers in France and Poland, both of which will open next year, and a new supercomputing center in Barcelona, Spain. Its also mulling an advanced packaging facility in Italy.
Geopolitical concerns
Over the next 3 years, TSMC stated it will invest $100 billion to broaden its capability. Much of that will likely be invested in Taiwan, however the business has actually already committed to a $12 billion fab in Arizona. Far, the business hasnt stated whether it will be spending any big sums in Europe.

There, the semiconductor manufacturer is investing another $13 billion to upgrade and expand the factories to accommodate its Intel 4 procedure (previously understood as 7 nm). Much of that will likely be spent in Taiwan, however the company has actually currently dedicated to a $12 billion fab in Arizona. Far, the company hasnt said whether it will be spending any large sums in Europe. Its not as rewarding down there, however theres plenty of volume offered, and any Chinese-made chips would assist decrease the countrys reliance on semiconductor imports, which total around $300 billion yearly.
That business is building a brand-new fab in Italy along with Tower Semiconductor, which Intel is in the procedure of obtaining.

Gelsinger has been talking with EU leaders for months, and he said that whether the business completes every task on its wishlist will depend on whether the bloc provides on the chipmaking subsidies it has actually been discussing.
Both the EU and United States have actually been alarmed in current years as theyve suddenly discovered their dwindling share of global semiconductor manufacturing. Part of the inspiration comes courtesy of China, which has said it will invest huge sums to improve its domestic chipmaking sector. While the nation unquestionably has its sights set on the most sophisticated chips, its most likely to capture share at the lower-end. Its not as profitable down there, however theres plenty of volume available, and any Chinese-made chips would help lower the countrys reliance on semiconductor imports, which total around $300 billion each year.
In the meantime, China is locked out of the leading edge since it does not have access to EUV lithography equipment. Only one company makes the devices, the Netherlands ASML, which is disallowed from selling them to China. Recreating the tools might take Chinese engineers a years or more, all while ASML continues to push ahead.
ASML is a European company, naturally, as are numerous of its providers, including Carl Zeiss, which makes the precision mirrors used in the EUV devices..
While the EU doesnt have any leading-edge semiconductor manufacturers itself, it does have firm footing in chipmaking. That business is developing a new fab in Italy along with Tower Semiconductor, which Intel is in the procedure of obtaining.


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