Intel Pauses European Projects, Prioritizes Ireland and Germany
In 2022, Intel engaged in negotiations with the Italian government to invest $5 billion in establishing a packaging and testing plant. This project was to receive government funding, covering 40% of the costs, along with other subsidies and incentives. Additionally, Intel planned to establish a research and development center in France, aiming to create a comprehensive semiconductor supply chain across Europe.
According to TomsHardware, Intel is halting some of its major project investments in Europe, redirecting resources to other initiatives, which has affected the original investment plans in Italy and France. Intel has shifted its focus to the wafer manufacturing plant in Ireland, which boasts advanced production lines, as well as the new wafer manufacturing plant in Magdeburg, Germany, and the newly established semiconductor assembly and testing facility near Wrocław, Poland.
Intel initially intended to set up a research and development center near Paris, France, focusing on artificial intelligence (AI) and high-performance computing (HPC), employing 450 people and commencing operations by the end of this year. Although Intel maintains that France remains a suitable candidate for future R&D centers, the project was suspended earlier this year due to macroeconomic and market changes.
Intel faces a similar situation in Italy, where it originally planned to invest €4.5 billion in building a packaging and testing plant, creating 1,500 jobs and benefiting suppliers with an additional 3,500 related jobs. However, this project was ultimately hindered following the failure of Intel’s acquisition of Tower Semiconductor.
Since returning in 2021, Intel CEO Pat Gelsinger has aimed to significantly expand capacity to accelerate the IDM 2.0 strategy. Nevertheless, many projects have experienced delays or cancellations. For instance, the new wafer manufacturing plant in Germany, initially slated to begin operations in the fourth quarter of 2027, is rumored to have been postponed to late 2028.
