The first location of a new factory was chosen

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US technology giant Intel has chosen the East German city of Magdeburg as the location for a new semiconductor plant in Europe, an investment of several billion euros, and will make the decision public on March 4, a person familiar with the matter told Reuters News.ro.

The company said in September that it could invest up to $ 95 billion in Europe over the next decade, and could announce the locations of two major new European chip factories by the end of 2021, but it has not yet been done. an announce.

Germany tops the list of potential locations, with local governments in Penzing – Bavaria, and Magdeburg and Dresden – in eastern Germany, trying to attract the company from the US.

Analysts said Intel could wait for new legislation before deciding on a European location.

A European chip law aims to reduce the continent’s dependence on advanced Asian semiconductor suppliers by subsidizing the local development of large chip factories.

Government subsidies, the stability and availability of skilled workers were factors that encouraged the CEO to choose Germany for the new factory, the source said.

Germany is also home to many of the world’s largest carmakers, which have been hit hard by the global shortage of semiconductors.

The city of Magdeburg is the capital of the state of Saxony-Anhalt. It is home to Otto von Guericke University and has space for a new factory in the southwestern Eulenberg Industrial Zone.

It is unclear when production could begin.

Intel, which announced plans to build a $ 20 billion US plant in the Ohio semiconductor manufacturing complex in January, is likely to consider France and Italy for new locations in Europe as it plans to build a design center and a packaging plant, the source added.