Intel Announces MegaFab Keep The project will create 7,000 jobs during construction and 3,000 high-skilled jobs once the factory is online. The fabs would be among the biggest in the world.

Intel has announced that it will invest up to $100 billion over the next 20 years in a new mega fab facility in Ohio. The investment is part of a strategy to boost capacity amid a global shortage of chips used in everything from smartphones to cars.

“the industrial Midwest is back” and Intel Announces MegaFab Keep in Ohio

During his speech at the groundbreaking ceremony, President Biden announced that “the industrial Midwest is back” and that Intel’s new site in central Ohio would be the first fab to be built there since 1976.

•  The local community

The mega-site will also have a significant impact on the local community, creating 3,000 Intel jobs during construction and tens of thousands of long-term jobs from suppliers and other partners. 

1. It will also have a large impact on the environment, with an emphasis on green building principles and using 100% renewable electricity.
2. After considering a number of sites, the company chose Licking County, near Columbus. 
3. It was chosen because of its location, which provides infrastructure and access to the best talent.
4.  It also offers a quality of life that aligns with the company’s sustainability goals and its commitment to hiring veterans.
5. At the site, the fabs will produce chips for Intel and its foundry customers.

 This is an important part of the company’s plan to become a global leader in semiconductor manufacturing.

•  Require massive investments in manufacturing capacity

Intel is hoping to regain its status as the world’s dominant chipmaker and that will require massive investments in manufacturing capacity. 

1. Gelsinger has said that Intel plans to invest more than $100 billion in chip factories around the world over the next decade
2. which will help the company to meet the demand for high-performance chips.
3. As part of that effort, the chip maker has already broken ground on two fabs in Arizona, but it hasn’t picked a location yet for its second.

Gelsinger hasn’t given an exact date, but he said that he wanted to announce the locations of new chip factories in the United States and Europe early next year.

• The chip giant is running into problems in Germany

where a planned fab in Magdeburg has been put on hold for weeks due to rising costs and a call from the government for higher subsidies.

According to the latest news, if Intel doesn’t get the money it needs from the government it might change its plans for the facility. Ultimately, this could delay the project’s build-out for as long as a decade and cost up to $100 billion.

 The project will also create tens of thousands of high-paying jobs in the state of Ohio.

The semiconductor industry is a critical component of any modern economy, and intel is building two new chip fabs in the United States. The fabs will be used to build chips that power computers and other devices. The project will also create tens of thousands of high-paying jobs in the state of Ohio.

1. In order to stay competitive in the industry

 Intel must maintain its manufacturing capacity and increase its production volume. To achieve that goal, the company has refocused its chip production toward advanced nodes. 

The fabs are expected to start construction in the first half of 2023, with operations set to begin in 2027.

• Gelsinger said that the new megafab that Intel Announces MegaFab Keep in Ohio would be used for Intel’s next generation of chips
• which are designed using advanced Angstrom-era transistors and will support both foundry customers and Intel’s own business in Europe. 
• He added that the new fabs would allow Intel to keep pace with demand while reducing costs and improving its sustainability efforts.

2.  Chip-making in Europe.

He cited Europe’s need to double its share of the global chip market from 9% today to 20% by 2030 and called for hefty government subsidies in order to spur investment in chip-making in Europe. 

“If we can get a lot of people to invest in this, that could be an important European success story,” 

The EU is planning to spend up to EUR43 billion on chip development in its member states, a move aimed at stimulating the chip sector and mitigating the effects of the chip shortage. 

• Its aim is to help European businesses regain access to vital microchips and reduce their dependence on Asia.
• Several European governments have expressed interest in investing in chip-making, including Italy, where the country’s government is discussing plans to build an advanced packaging plant. 
• Those projects would help to offset the looming shortage of semiconductors that has recently threatened to cripple the auto industry.

3. The EU’s green transformation,

Besides being a key contributor to the EU’s green transformation, these Intel Announces MegaFab Keep will also help drive innovation in artificial intelligence (AI) and high-performance computing (HPC), according to Gelsinger. 

Those developments will benefit many industries, such as automotive, agriculture, climate, energy, and drugs. 

The EU is aiming to double its chip manufacturing capacity by 2021, and it will offer generous incentives for companies that commit to creating jobs and investing in infrastructure.

Intel’s EUR80 billion investment in Europe is a major commitment to the region,

In a press release, Intel announced that it plans to invest EUR80 billion in two new chip fabs across Europe over the next decade. 

• The company has previously said it wants to see 20 percent of its chips manufactured in Europe by 2030, and the new fabs will be a significant part of this plan.

• Intel’s EUR80 billion investment in Europe is a major commitment to the region, and the company expects that its investments will eventually yield more than 1,000 high-tech jobs. 

• In addition to the megafab, Intel is also planning to expand its European R&D hub in France as well as a European semiconductor design center.

Costs

• The new hubs will be critical for driving new generations of AI and HPC chips. They will also be a key part of the company’s IDM 2.0 strategy.
• Aside from the Intel Announces MegaFab Keep in Magdeburg, Germany, the investment will include expanding and modernizing its existing fabrication facilities in Leixlip, Ireland. 
• A separate $12 billion check will be used to boost production at that site as well, helping to drive down costs and make the technology more accessible in Europe.

This is expected to result in 450 jobs by the end of 2024.

Similarly, the chipmaker is preparing to expand its AI, audio, graphics, and data center research and development hub in Gdansk, Poland by around 50% of its current size. This is expected to result in 450 jobs by the end of 2024.

• These new fabs are a major component of intel’s push to re-establish its lead in the data center market. This includes boosting chip efficiency in order to help reduce power consumption and improve energy sustainability.
• But while these fabs will be critical to boosting revenue and profitability, they’re not cheap. They can take years to get up and running, and they require a lot of funding.
• As a result, many governments are eager to encourage companies like intel to build their own factories in their countries. 
• The EU is especially keen to curb its reliance on chips from Asia.

The German government has reportedly been offering some hefty subsidies to encourage the construction of the Megafab in Magdeburg, but the investment is far from cheap. 

According to Reuters, the cost of building the Megafab has ballooned from an estimated EUR17 billion (USD 18 billion) to EUR20 billion.

The first step in a quest to return the company

• In an attempt to rekindle its chip manufacturing prowess, Pat Gelsinger hatched a grandiose plan to remake Intel. 
• Within months of taking over last year, he launched IDM 2.0 (Integrated Device Manufacturer) and snagged Tower Semiconductor for $5.4 billion 
•  the first step in a quest to return the company to its former glory and compete with fabless rivals Nvidia and TSMC.

Schedule

The ambitious schedule was slowed by an economic downturn and the uncertainty of the Ukraine War. However, it looks like Gelsinger is still on track to achieve his vision of IDM 2.0 and Intel Foundry Services – the fabled “Silicon Heartland.”

1. At a ceremony in Cleveland, Ohio on October 4th, Gelsinger announced that he was resurrecting a $20 billion mega fab project he first proposed in January of last year. 
2. The fabs would produce a new generation of 2nm and 1.8nm chips, called the Angstrom-era transistor technologies, to help support a push towards Intel’s IDM 2.0 goals.
3.  Silicon Heartland that stretches from the US to Ireland 
4. It also would make the first step toward a Silicon Heartland that stretches from the US to Ireland to the UK. 
5. The site in Magdeburg, Germany, will be the nerve center of Intel’s EU operations, and two advanced fabs will begin construction as early as 2023.
6. Meanwhile, the company will expand its fab in Leixlip, Ireland by doubling its size to manufacture chips on its Intel 4 process.
7.  It will also invest EUR12 billion to build a high-performance computing research center in Plateau de Saclay, France, and another supercomputing facility in Barcelona, Spain.

• The fires of local economic recovery and boosted job creation

In an effort to stoke the fires of local economic recovery and boost job creation, Gelsinger is also trying to convince the European Union (EU) to subsidize European semiconductor production to match or exceed that of the US. The EU has vowed to increase its share of global semiconductor supplies to 20% over the next decade.

• To make the most of its European investments

 Gelsinger is launching a series of strategic partnerships with universities and research institutions across Europe. For example, IMEC in Belgium will collaborate with Intel on a new chip that can be used for self-driving cars and augmented reality. 

The company is also partnering with the Technical University of Delft, CEA-Leti, and Fraunhofer Institutes in Germany to develop new technology in memory, software programming models, security, cloud, and HPC.

Intel Announces MegaFab Keep Billion Euro Investment in Italy

Intel CEO Pat Gelsinger has placed a lot of bets aimed at regaining his company’s former semiconductor mojo. He’s made a lot of gargantuan spending commitments to build new fabs and packaging plants around the world.

1. The latest of these bets is a $4.5 billion investment into a state-of-the-art, back-end chip manufacturing facility in Italy. This is the first of its kind in Europe and should be up and running by 2025-2027.
2. This is part of a much larger European investment that includes an initial 17 billion euros into a leading-edge semiconductor fab mega-site in Germany, and the creation of a new R&D and design hub in France. 

These plans are meant to help create a “next generation” European semiconductor ecosystem and support the EU’s transition to a greener economy through more efficient chips.

 Water-efficient and use less water than existing factories

These investments are a huge step toward creating a more balanced and resilient semiconductor supply chain that isn’t so heavily dependent on Asia. 

1. The European Union has a large share of the global semiconductor market, but it needs to be able to produce more chips locally and globally in order to compete.
2. As an added bonus, the fabs will also be water-efficient and use less water than existing factories. This is a very important thing considering that the state of Arizona has been in drought for over a decade.
3. The new fabs are expected to begin construction in the first half of 2023, and they will be able to start producing chips using Intel’s advanced Angstrom-era transistor technologies by 2027. 

They will be part of Intel’s IDM (integrated device manufacturer) 2.0 strategy, expanding Intel’s capabilities to service the needs of global silicon customers.

Conclusion

The project will create 7,000 jobs during construction and 3,000 high-skilled jobs once the factory is online. Intel Announces MegaFab Keep that it will invest up to $100 billion over the next 20 years in a new mega fab facility in Ohio.

 The investment is part of a strategy to boost capacity amid a global shortage of chips used in everything from smartphones to cars. 

The mega-site will also have a significant impact on the local community, creating 3,000 Intel jobs during construction and tens of thousands of long-term jobs from suppliers and other partners.

 It will also have a large impact on the environment, with an emphasis on green building principles and using 100% renewable electricity.