Under the leadership of Henry Kissinger, a 30-year veteran who took over as CEO last year, Intel has embarked on a massive expansion in the past two years, launching plans to invest hundreds of billions of dollars in chips. In addition to the United States, Intel is also planning to build a new generation of fabs in Europe, including 17 billion euros in Germany.
Intel plans to build a fab in Magdeburg, Germany, starting next year,The chip will roll off the production line in 2027, with a total investment of 17 billion euros and 3,000 permanent jobs expected to be created, as well as tens of thousands of supply chain jobs.
However, Intel's calculation is very shrewd. They have large investments in many places, and they do not want to spend all their own money on investment in Germany, which needs subsidies from Germany and the EU.
The amount of subsidies is not low. The German government's 2022 budget announced part of the subsidies, up to 2.72 billion euros,But this is not yet final, with the total expected to be 6.8 billion euros, or 48.4 billion yuan.
If the demand is honoured, it means that 40% of the 17 billion euros investment will be subsidised by the government and only about 60% will be invested by Intel itself, which could greatly reduce the cost of its chip factories.
As for Intel's confidence, it is not surprising that the plan fulfills the dreams of Europe, which, like America, now wants to increase its own chip production capacity and reduce its dependence on foreign suppliers.