On Monday, American corporation Intel penned a deal with the German government that will create the largest ever foreign investment in the nation.
At a total cost of over €30 billion, the agreement will see an Intel chip manufacturing plant open in Magdeburg, a midsize city with some 230,000 inhabitants located in Eastern central Germany.
The German government is set to cover just about a third of the investment. A massive price of course, but it’s one that will pay dividends in jobs, economic stimulus, and power in the ever-important tech industry.
Construction of the plant is planned to be completed by 2027. The factory is expected to provide Germany with over 3,000 high-paying jobs and greater footing in supplier networks.
The investment is a strategic move, too, as Europe continues to try to curb its dependence on America and China for microchip production and Germany seeks to reap some of the profits of the booming tech industry.
Intel already has a chip manufacturing plant in Ireland and is planning a test facility outside Wroclaw, Poland. More overseas tech investment is coming to Europe.
Germany – a key European tech hub
As Europe’s largest economy, this news should be of no surprise to anybody that’s been keeping up. Germany has over 83 million people and ranked as the sixth best nation in the world to start a business in 2021.
Also in 2021, the government invested over €15 billion in its startup market, and again approved plans to stimulate the startup economy by €30 billion last summer.
So, this industry pivot is no accident. Berlin saw potential and is filling it.
Germany has long been a nation to watch for tech, and especially so for HR technology. A quarter of HR tech investment in Europe went to Germany in 2021.
The nation is home to countless HR tech startups, too. If you’re looking for a tech solution to a workplace people challenge, Europe’s second most populous country could be the place to start.
What could this Intel microchip plant mean for already-existing tech startups in Germany? Will Intel dominate the market, or will it create huge market-wide stimulus for a more insular, less global supply chain-reliant tech industry?
Watch this space.
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