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Intel Considering German Fab Near Munich

Intel
(Image credit: Intel)

A minister of the German state of Bavaria has confirmed that the state is in discussions with Intel about building a local fab, Reuters reported today. Economy Minister Hubert Aiwanger did not detail how the negotiations were proceeding but indicated that Bavaria offered Intel at least one possible location.

Pat Gelsinger, Intel's CEO, visited Europe in April to discuss building a state-of-the-art semiconductor fab there to support the company's IDM 2.0 strategy comprised of vast in-house manufacturing, some outsourcing and offering contract manufacturing services under the Intel Foundry Services moniker. 

Intel hopes to get some €8 billion ($9.7 billion) in government subsidies, which may include incentives like tax breaks and direct investments. This could be a hint that the chip giant plans to build a fairly large fab in continental Europe that could cost around $25 billion or more.

Intel's actual plans for the fab are yet to take shape, but Bavarian officials have already proposed an abandoned air base in Penzing-Landsberg near Munich as a potential location for the fab.

"I strongly support this," Aiwanger said as per Reuters. "The possible location of a large international semiconductor manufacturer in Bavaria is an outstanding opportunity."

Intel has been operating its fabs near Leixlip, Ireland since the 1980s, so the company is not new to Europe. Adding an additional location, however, would help it ensure sufficient production capabilities for existing clients and future fabless customers when Intel starts to offer manufacturing services. 

Intel plans to disclose formal plans for its fab in mainland Europe by the end of 2021. Besides Germany, the company is also considering Belgium, the Netherlands and Luxemburg.

  • littlechipsbigchips
    I dont understand this , people are jobless in USA and intel has 50 states to choose from , and yet they open in Germany ?
    Reply
  • Neilbob
    I'd have thought it would be more logical to build an Argentinian fab near Munich.
    Reply
  • passivecool
    I dont understand this


    A Grand Understatement.
    I think you are not using your big chips. Just the little ones for typing.

    But oh, wait, wasn't intel just spending 20bn for 2 fabs in Arizona? next to all those others?

    What do you think all those german-made bmws, mercedes audis -- oh and soon teslas -- run on?
    (hint: ford ran out)

    Bug chips are also necessary for reading, apparently, but it seems opinionation runs on the small ones.

    PS
    I hope they DO build it somewhere else. It is nearly impossible to find an affordable place to live anywhere in bavaria anymore. The last thing anyone needs is a few more thousand overpaid chip architects competing in the real estate market.
    Reply
  • spongiemaster
    Neilbob said:
    I'd have thought it would be more logical to build an Argentinian fab near Munich.
    You got it backwards. It would be logical to build a German fab in Argentina.
    Reply
  • Why_Me
    They'd be better off building it in Ukraine. Cheaper labor and less red tape.
    Reply
  • FakeMike
    Why the hell would any government subsidize a company making billions in profit?! This is completely crazy. Have them build the factory with their own profits.
    Reply
  • Why_Me
    FakeMike said:
    Why the hell would any government subsidize a company making billions in profit?! This is completely crazy. Have them build the factory with their own profits.
    The German automobile industry needs those chips.
    Reply
  • jkflipflop98
    There's plenty of places in the United States that would love to have tens of thousands of high-paying jobs move into the area.
    Reply
  • TerryLaze
    passivecool said:
    Bug chips are also necessary for reading, apparently, but it seems opinionation runs on the small ones.
    Alter, kaefer is beetle not bug.
    Is opinionation supposed to be another model of car?!
    Reply
  • sizzling
    jkflipflop98 said:
    There's plenty of places in the United States that would love to have tens of thousands of high-paying jobs move into the area.
    And what if the chips are not intended for the US market? A global company needs to think globally.
    Reply