Intel (INTC) to spend tens of billions of dollars on new plants in Europe

Intel (NASDAQ: INTC) said it will spend more than 30 billion euros ($33 billion) to build two chip-making plants in Magdeburg, Germany.

The deal represents the single biggest foreign investment in Germany, whose government will provide subsidies worth nearly 10 billion euros.

"[The] agreement is an important step for Germany as a high-tech production location – and for our resilience," Chancellor Olaf Scholz said after Monday's signing ceremony.

"With this investment, we are catching up technologically with the world's best and expanding our own capacities for the ecosystem development and production of microchips."

The deal with Germany’s government comes just a few days after Intel unveiled plans to build a $4.6 billion chip plant in Poland. On Sunday, Intel said it will spend another $35 billion to build a factory in Israel.

“We’re grateful to the German federal government, Chancellor Olaf Scholz and the government of Saxony-Anhalt for their partnership and shared commitment to fulfilling the vision of a vibrant, sustainable, leading-edge semiconductor industry in Germany and the EU,” said Intel’s CEO Pat Gelsinger.

Intel shares are up about 1% in pre-market Tuesday.

By Senad Karaahmetovic

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