Chip manufacturing: Intel fab to be built in Magdeburg

Since Tesla decided to build its so-called “Gigafactory” in Grünheide near Berlin, Germany seems to be experiencing a real boom in the production of modern technology. As has now become known, the world-renowned chip manufacturer Intel also wants to rely on Germany as a location in the future. More precisely, a factory for semiconductor production is to be built in Magdeburg.

The fight against the semiconductor shortage

The reason for the ambitions is the so-called “EU Chip Act”. This aims to bring the production of semiconductors to the EU as well. This is worth a whopping 43 billion euros to the confederation of states. What may sound like a lot of money also serves a very useful purpose. After all, the currently still rampant chip crisis has made it clear how dependent we are on China as the number one semiconductor producer. The only way out of this misery is to become more independent. One step toward independence is now to be the construction of an Intel fab in the state capital of Saxony-Anhalt. Incidentally, this should not only ensure more chips made in the EU. On top of that, it will provide the structurally rather weak region with at least 1,000 additional jobs.

Optimal location conditions

If one looks at the other applicants who were in the running for the location award, the question does arise as to how Magdeburg was able to prevail. After all, the Saxon state capital Dresden, among others, is also said to have made an effort to attract Intel. On top of that, there were also other European competitors, against whom Magdeburg apparently came out on top in the end. This can possibly be attributed to the extremely good conditions that Magdeburg’s industrial area called “Eulenberg” offers.

The Intel Fab probably chose a location that had everything it needed for a factory building of this size. On the one hand, Intel should have enough space to build its complex on the more than 300-hectare site. Since it is completely undeveloped, construction should also be able to start easily. Furthermore, “Eulenberg” is located directly on the A14. This also gives it a decisive advantage over many competitors in terms of infrastructure. So Intel’s decision can certainly be understood.

Well over 1000 new jobs

Given the advantages of Intel settling here, Magdeburg is naturally delighted with the chip manufacturer’s decision. Above all, the additional jobs that the tech company should bring to the region are particularly pleasing to Marco Langhof, President of the Employers’ Association of Saxony-Anhalt. It was he who promoted the region in advance. In addition to the large amount of available commercial space, Magdeburg also has suitable skilled workers at the ready. In particular, the students of the technical university could be an enrichment for Intel.

All in all, Intel is expected to enrich the region with 1000 jobs. However, we are only talking about so-called “direct” jobs, which will be used in the factory complex itself. On top of that, many other jobs are always created in such large-scale projects. So it’s hardly surprising that the entire project is benefiting from a hefty EU subsidy. Subsidies in the double-digit billions are expected to flow in. Incidentally, the Mitteldeutsche Rundfunk (MDR) already reported on Magdeburg as a possible location winner in November last year.

More factories to follow

The EU has apparently declared war on the semiconductor shortage and is letting plenty of financial support flow as part of its EU Chip Act. Intel, of course, is correspondingly taken with the idea. The company has therefore reached an agreement with the EU that at least two factories are to be built in Europe. Magdeburg is expected to be announced as the first of the two Intel fabs in the EU as early as next week. We are curious to see which location will be awarded the second contract.