Intel said on Tuesday that it plans to spend 17 billion euros, or approximately US$19 billion, to build new chip plants in the city of Magdeburg in Germany.
Intel CEO Pat Gelsinger also said that the company plans to spend around US$90 billion for the next ten years in Europe to build additional chip facilities.
The US chip giant is planning to double the production capacity of its facility in Ireland, while also building an advanced back-end facility in Italy, the CEO said.
Investments will also be made in France, Poland and Spain to build various research facilities, Gelsinger said.
The two chip plants in Germany will start construction during the first half of 2023 and begin operations in 2027 and will make the most advanced chips.
Since he became the CEO of Intel a year ago, Gelsinger had repeatedly said that the company plans to reduce dependence on factories in Asia for its chip production.
The recent chip shortage and Covid-19 pandemic had shown the global chip industry’s reliance on Taiwan and South Korea, home to the world’s two biggest contract chipmakers TSMC and Samsung, respectively, for chip production.
Since then, US and Europe have announced various policies to support the local production of chips.