Intel and Germany sign a deal that will see the US company spend more than €30 billion to build a chip manufacturing site in the eastern city of Magdeburg after Germany pledged to cover a third of the investment required. It is also the largest foreign direct investment in the modern history of the country.
Word of the agreement came as German Chancellor Olaf Scholz met Intel CEO Pat Gelsinger in Berlin.
“The investment in Germany means a significant expansion of Intel’s production capacity in Europe and is the biggest investment ever made by a foreign company in Germany,” Vice Chancellor and Economy Minister Robert Habeck said in a statement.
The plan will need approval by the European Union’s executive branch to ensure the deal doesn’t give Intel an unfair advantage over its competitors.
The “Silicon Junction” project in Magdeburg adds to Intel’s plans for an assembly and test facility near Wroclaw, Poland and an existing chip factory in Ireland.
