Intel Plans to invest $36 Billion in European Chip Plant

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Intel Plans to invest $36 Billion in European Chip Plant
16 Mar 2022
6 min read

News Synopsis

Intel has announced that it would invest $36 billion in chip production and research across Europe, along with a new chip-making complex in Germany in order to keep pace with surging demand for semiconductors.

CEO Pat Gelsinger said that Intel has chosen the city of Magdeburg in Germany, to build one of the largest and most advanced semiconductor manufacturing facilities on the continent. The company plans a down payment of approximately $18.6 billion for this facility.

This is Intel's second multi-billion dollar asset investment announced in 2022. Earlier this year, the company chose Ohio to build a $ 20 billion chip manufacturing facility that could expand to a $ 100 billion site.

Mr Gelsinger also said that the company would invest a total of up to €80 billion in Europe, and research and development facilities in France as well as manufacturing facilities in Ireland, Italy, Poland and Spain

In February, the European Union proposed € 43 billion to support the industry with the aim of doubling the global share of manufacturing in Europe to 20% by 2030.

According to regulatory filings, Intel will source most of its investment from cash flow, raising approximately $29.5 billion in cash and on-hand investment at the end of the year. It ended with a debt of about $ 38 billion. The exact amount of cash required depends on the level of government subsidies, the company said.

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