Intel has selected Magdeburg, Germany as the site for a new multibillion-euro European chip factory and will make the decision public on March 4, Reuters news reported.
Intel in September said it could invest as much as $95 billion in Europe over the next decade and announce the locations of two major new European chip fabrication plants by the end of 2021, but no announcement has been made.
Germany was top of the list of potential locations, with the local governments of Penzing in Bavaria and Magdeburg and Dresden in eastern Germany trying to tempt the U.S. company.
Analysts had said Intel could be waiting for the introduction of new legislation before deciding on a European location. The European Chips Act aims to reduce the continent’s dependence on Asian suppliers for advanced semiconductors by subsidising the local development of large chip factories.
Germany is home to many of the world’s biggest automakers which have been particularly badly hit by the global chip shortage.
Intel in January announced plans to build a $20 billion U.S. chipmaking complex in Ohio. Intel is likely to consider France and Italy for new locations in Europe as it plans to build a design centre and packaging plant, the report said.
