Dive Brief:
- Intel is growing its production network in Europe, with plans to invest $4.6 billion in an assembly and testing facility in Wrocław, Poland.
- In addition, the chipmaker is expanding its investment in a semiconductor fabrication plant in Magdeburg, Germany, now up to approximately $33 billion.
- Together with the company's $17 billion investment in a manufacturing complex in Ireland, Intel is working to create a Europe-based, end-to-end semiconductor supply chain.
Dive Insight:
Intel has been focused on strengthening its Europe manufacturing supply chain amid a bid to diversify its global manufacturing network.
While the company currently operates 10 manufacturing sites around the globe, its chip manufacturing power is centered in North America and Asia.
The fabrication plant in Germany will be the second of its kind for Intel in Europe, alongside the Ireland site. Meanwhile, it operates fabrication sites in Arizona, New Mexico and Oregon in the U.S., with another on the way in Ohio.
In March 2022, the semiconductor maker began shifting its geographic network, announcing plans to invest up to 80 billion euros in the continent's supply chain capacity.
The plan included funds for the fab facility in Germany and manufacturing site in Poland, as well as an R&D center in France and foundry services in Italy and Spain. Intel aims to have the new EU-based sites work together to form an end-to-end supply chain, increasing resiliency and lowering costs.
The new Poland site is expected to create 2,000 jobs, helping to meet the increased demand that Intel says it expects to see by 2027. In Germany, Intel expects to begin production in four to five years and create 3,000 jobs.
“Poland is already home to Intel operations and is well positioned to work with Intel sites in Germany and Ireland,” Intel CEO Pat Gelsinger said in a statement. “It is also very cost-competitive with other manufacturing locations globally and offers a great talent base that we are excited to help to grow.”
