In June 2023, leading processor manufacturer Intel reached an agreement with the German federal government, announcing the signing of an amended investment memorandum. The plan involves investing over EUR 30 billion to construct two new fabs in Magdeburg. The German federal government has agreed to provide a subsidy of EUR 10 billion, including incentives and subsidies from the European Chips Act and government initiatives.

According to a report by Tom’s Hardware citing sources, Intel has submitted conceptual drawings for a new fab in Germany. The initial plans include two fabs, designated as Fab 29.1 and Fab 29.2, equipped with the world’s most advanced semiconductor tools.

Moreover, Intel reportedly has ample space for up to six additional fabs. The first batch of two fabs is expected to commence operations in the fourth quarter of 2027, with both the Intel 14A (1.4nm) and Intel 10A (1nm) advanced processes believed to be part of the plan.

As per previous reports from TechNews, Intel has not disclosed any details regarding the 10A node, but it promises at least double-digit improvements in power consumption and performance. Intel CEO Pat Gelsinger has previously stated that new processes typically improve critical dimensions by approximately 14% to 15%. Therefore, it is plausible that the 10A and 14A nodes will also experience similar improvements.

Source: Intel

As per Intel’s roadmap, Intel 14A is also optimized in 2027, so it seems that 10A falls between 14A and 14A-E.

The report from Tom’s Hardware further indicates that Fab 29.1 and Fab 29.2, the two three-story buildings, occupy approximately 81,000 square meters, with a total length of 530 meters and a width of 153 meters. Each floor has a height ranging from 5.7 to 6.5 meters. Including the roof structure for air conditioning and heating, the building reaches a height of 36.7 meters.

The High-NA EUV exposure machines are installed on the second floor with a height of 6.5 meters, while the upper and lower floors are used for material logistics, providing necessary resources such as water, electricity, and chemicals.

ASML models that the 1st generation of the High-NA-enabled production node will employ between 4 to 9 High-NA EUV exposures and a total of 20 to 30 EUV exposures, encompassing both Low-NA and High-NA.

Read more

• [News] Advancing into Intel 10A! Intel’s 2027 Blueprint Adds 1-Nanometer Process
• [News] Intel Promotes 1.8-Nanometer Process in South Korea, Reportedly Pledges Various Benefits to Startups

(Photo credit: Intel)

After a month of negotiations, the German government successfully resolved the budget deadlock today. Officials have confirmed that subsidies for the construction of TSMC’s and Intel’s fabs will remain unchanged. They stress that these investments will benefit the entire country.

As reported by CNA, on November 15th, the German Federal Constitutional Court declared the federal government’s redirection of the Covid pandemic emergency budget to the “Climate and Transformation Fund” unconstitutional. This fund includes subsidies for TSMC and Intel, raising concerns about potential deviations from Germany’s commitments and introducing uncertainties to the construction plans.

After a month of intense negotiations among Germany’s three ruling parties, they reached an agreement before the Christmas holiday, putting an end to the budget deadlock. Michael Kellner, Parliamentary State Secretary at the Federal Ministry for Economic Affairs, confirmed on December 13th local time that subsidies for the construction of TSMC’s and Intel’s fabs remain unchanged.

TSMC is planning to establish its first European production base in Dresden, the capital of the German state Saxony, with an investment exceeding EUR 10 billion. The German government has committed to a EUR 5 billion subsidy. Meanwhile, Intel aims to invest EUR 30 billion in Magdeburg and is expected to receive a EUR 9.9 billion subsidy.

In an interview with DPA on December 13th, Kellner emphasized that these investments will ensure future economic strength, benefiting the entire country.

The federal government’s confirmation of providing subsidies for fab construction brought relief to local leaders. Martin Dulig, Economic Minister of Saxony, noted that as time dragged on, trust was at risk of diminishing. He expressed great satisfaction with the federal government’s decision today.

Dulig underscored that for Saxony and Europe, TSMC’s fab establishment can reduce dependence on Asia and the United States, benefiting the local industry chain and small and medium-sized enterprises. This holds significant strategic importance.

“It is both good and important that the federal government has reached an agreement,” Bertram Kawlath, the vice president of the VDMA, an industry association of mechanical engineers in Germany, said in a statement. “The weeks of uncertainty are now over, clearing the way for important investments,” he said.

(Image: TSMC)