Intel to Invest Over $33 Billion in Chip-making Plants in Germany

In June 2023, Intel CEO Pat Gelsinger and German Chancellor Olaf Scholz signed an agreement for Intel to invest more than 30 billion euros — approximately $33 billion — in two semiconductor fabrication plants in Magdeburg, Germany. The German government pledged roughly 10 billion euros in subsidies, covering approximately one third of the total investment. Scholz hailed it as the largest foreign investment in German history.

The deal was part of Intel's broader strategy to rebuild its manufacturing capabilities and compete with Taiwan's TSMC for global chip dominance. The Magdeburg facilities, nicknamed "Silicon Junction," are expected to begin production in four to five years, fitting into Europe's larger push to reduce dependence on Asian chip manufacturing.

When Intel signed for two Magdeburg chip plants in June 2023 AP, Berlin billed the more than 30 billion euro commitment as the largest foreign investment in German history and pledged 9.9 billion euros toward it. Neither factory will rise. Intel paused construction for two years in September 2024 as losses mounted, then killed the project on July 24, 2025 under CEO Lip-Bu Tan, who called such factory investments unwise and excessive after a quarterly loss of 2.9 billion dollars it-daily.net. Saxony-Anhalt loses about 3,000 promised jobs, and the subsidy pledge dies with the deal. Watch whether Brussels rethinks chip subsidies before another investor signs for the site.