Intel Plans To Spend IDR 1.25 Quadrillion In Germany, What For?

Intel will soon complete the construction of a mega-site in Germany. (photo: doc. intel)

JAKARTA - Intel's semiconductor factory in Germany will soon become a reality. The company said it would invest large sums in the plant, dubbed the mega-site.

Investments worth 88 billion US dollars or equivalent to Rp. 1.25 quadrillion over the next decade it will be a very large factory in Germany. Not only at that location, Intel will also expand its factory in Ireland with funds of 12 billion US dollars or equivalent to Rp. 171 trillion.

The mega-site will consist of two factories. According to the company report, planning will begin soon with construction expected to take place in the first half of next year, as long as Intel gets the thumbs up from the European Union Commission.

Production should start at what Intel calls "Silicon Junction" by 2027. That means, factories won't help offset the global chip shortage anytime soon.

Intel says its dual plant will build chips using the most advanced Angstrom-era transistor technology. It is also expected to recruit 7,000 construction jobs during construction, 3,000 permanent positions and thousands of jobs across partners and suppliers.

Meanwhile, the expansion in Ireland aims to double Intel's manufacturing space at the company's existing sites, and bring Intel's forthcoming node 4 to its European manufacturing site.

The company is also in discussions with Italy to build an assembly and packing facility there at a cost of up to US$4.9 billion.

Launching Engadget, Wednesday, March 16, further, Intel also plans to build a European research and development center near Plateau de Saclay, France. As a result, Intel expects to create 1,000 jobs, of which 450 will be opened by the end of 2024.

The company said the plan centers on balancing the global semiconductor supply chain with the massive expansion of Intel's production capacity in Europe.

The new European investment comes as part of Intel's IDM 2.0 strategy introduced by Intel CEO Pat Gelsinger when he led the company a year ago.

Since then, Intel has announced a massive $20 billion investment into its existing Arizona site, along with an equally large $20 billion investment for a new Ohio site that Intel claims will be the largest silicon manufacturing site on the planet. .

“The EU Chips Act will empower private companies and governments to work together to drastically advance Europe's position in the semiconductor sector. This broad initiative will drive European R&D innovation and bring leading-edge manufacturing to the benefit areas of our customers and partners around the world," said Gelsinger.