Intel Corp INTC disclosed an investment Monday of over 30 billion euros ($32.7 billion) in Germany to expand its manufacturing capacity in Europe.
The company inked a revised letter of intent with the German government for building a wafer fabrication site in Magdeburg, the capital of Saxony-Anhalt state in Germany.
The agreement involves German subsidies of 10 billion euros, said a person familiar with the matter, according to Reuters.
The expanded investment in the site, Silicon Junction, includes building two first-of-a-kind semiconductor facilities in Europe.
The facility is expected to create 7,000 construction jobs over its first phase, with a projected about 3,000 permanent high-tech jobs at Intel and tens of thousands of additional jobs across the industry.
“Building the ‘Silicon Junction’ in Magdeburg is a critical part of our strategy for Intel’s growth. Combined with last week’s announcement of our investment in Wrocław, Poland, and the Ireland sites we already operate at scale, this creates a capacity corridor from wafers to complete packaged products that is unrivaled and a major step toward a balanced and resilient supply chain for Europe,” said Pat Gelsinger, Intel CEO.
Last week, Intel announced an investment of $4.6 billion for building a first-of-its-kind assembly and test facility in Poland.
The new investment in Germany, coupled with its existing wafer fabrication facility in Ireland and its planned facility in Poland, will help the creation of a distinctive and comprehensive semiconductor manufacturing value chain in Europe.
INTC Price Action: INTC shares closed higher by 0.05% at $36.38 after-hours on Friday.
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Image and article originally from www.benzinga.com. Read the original article here.