Intel is set to receive a massive sum of €6.8 billion in subsidies from the European Union for building a massive production site rivaling the recently announced Ohio campus. This is roughly 40% of the estimated construction cost for the first two semiconductor plants (€17 billion). German outlet Heise reports that the regional governments along with the EU will contribute to this amount by the end of 2024.
Construction of the Magdeburg site is set to begin in the first half of 2023. The €2.7 billion earmarked by the federal government will almost entirely be spent on Intel’s upcoming foundries. The remaining funds from the EU will be disbursed next year. This project is named the Intel Silicon Junction and is being designed for the production of advanced process nodes such as Intel 3, Intel 20A (2nm), and 18A (1.8nm).
The Dutch company ASML responsible for making the bulk of advanced chipmaking equipment will supply the high-NA EUV machines required for the production of 18A wafers. German companies Trumpf and Zeiss will supply the remaining machinery including lasers and optics. One high-NA EUV imagesetter is going to cost over €400 million. Intel, TSMC, and Samsung are the only three foundries capable of buying cutting-edge technology. Team Blue has already placed orders for multiple such machines and so has TSMC. Samsung hasn’t confirmed the same as of yet.