Intel to invest $88B for chip manufacturing in Europe over next decade
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Intel (NASDAQ:INTC) said on Tuesday that it would invest approximately $88 billion, or 80 billion Euros, in chip manufacturing in Europe over the next decade, including an $18.6 billion mega fab in Germany.
The mega fab, part of an initial investment by Intel of $36 billion, will see construction of two fabs in Magdeburg, Germany. This is expected to start in the first half of 2023, with production set to start in 2027, pending regulatory approval. 
The new fabs will create chips using Intel's most advanced Angstrom-era transistors, and help both foundry customers as well as Intel's own businesses in Europe and globally.
Intel (INTC) is also investing in related manufacturing and research efforts in France, Ireland, Italy, Poland, Belgium and Spain as part of the package.
The initial phase of the investment will also see Intel (INTC) invest an additional $13.1 billion, or 12 billion Euros, into an existing facility in Ireland.
âOur planned investments are a major step both for Intel and for Europe," Intel Chief Executive Pat Gelsinger said in a statement. "The EU Chips Act will empower private companies and governments to work together to drastically advance Europeâs position in the semiconductor sector." 
Intel (INTC) shares rose fractionally to $44.29 in early trading on Tuesday. 
Santa Clara, California-based Intel (INTC) also said the company has entered into negotiations with Italy for a "state-of-the-art back-end manufacturing facility" that could be worth up to $5 billion, or 4.5 billion euros. Operations could start between 2025 and 2027 if the two sides can come to an agreement on the facility. 
Intel's investment in Italy for a chip plant was initially reported in October and in December, talks were reported as "intensifying."
Earlier this month, Intel (INTC) said its autonomous driving unit, Mobileye, had confidentially filed for an upcoming initial public offering.