Intel Announces $88 Billion Megafab to Keep Chipmaking in Europe

Intel on Tuesday revealed plans for a second new "megafab," a chipmaking site in Magdeburg, Germany, that's the centerpiece of an expected $88 billion in investments across several European countries. The capacity expansion comes on top of other gargantuan spending commitments in the United States, including a planned megafab in Ohio, intended to bring Intel back to the forefront of chip manufacturing. From a report: "The world has an insatiable demand for semiconductors," Intel Chief Executive Pat Gelsinger said in a video announcing the investments. Today, 80% of chipmaking takes place in Asia, but the company's spending in the US and Europe will mean a "more balanced and resilient" supply chain that isn't so dependent on Asia. Intel will start with new chip fabrication facilities, called fabs, at the Magdeburg site costing about $19 billion, with construction set to begin in 2023 and manufacturing in 2027, Gelsinger said. That'll let Intel build its own chips with leading edge technology, both for Intel itself and through a major expansion of its business called Intel Foundry Services, build chips for other customers as well.

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