The initial cost of the facility in Magdeburg, the state capital of Saxony-Anhalt, is 17 billion euros – 19 billion dollars. The construction is planned to be completed in the next decade.

“Megazavod”, as they call it in the company, will actually consist of two enterprises. Design will start soon. Construction is expected to start in the first half of next year if Intel receives approval from the European Commission. Production should begin at what Intel calls Silicon Junction in 2027. So the plant won’t help make up for the global chip shortage anytime soon.

Intel says the two factories will produce chips using advanced Angstrom-era transistor technology. During construction, it is expected to create 7,000 construction jobs, 3,000 permanent jobs and thousands more for partners and suppliers.

Intel is also investing another 12 billion euros to expand its plant in Leixlip, Ireland. This will double production space and expand foundry services. The company is also in talks with Italy to build an assembly and packaging plant there, worth up to 4.5 billion euros.

Intel plans to build its European research and development center near Plateau de Saclay, France. As a result, the company expects to create about 1,000 jobs, 450 of which will be opened by the end of 2024. In addition, Intel plans to locate its main European foundry design center in France. Further investments are intended for Poland and Spain.

The company says the plan “focuses on balancing the global semiconductor supply chain with significant expansion of Intel’s European manufacturing capacity.” In February, the European Union announced $49 billion in funding to help prevent future chip shortages and reduce reliance on parts made in Asia.

“The EU Chip Act will enable private companies and governments to work together to radically improve Europe’s position in the semiconductor sector,” said Intel CEO Pat Gelsinger.