Intel picks Germany for huge chip plant

STORY: Intel has picked Germany as the site for a huge new chipmaking complex.

It’s among the first concrete plans announced as part of an $88 billion investment in Europe.

The U.S. chipmaker also said it would boost an existing factory in Ireland, and set up a research and development facility in France, and is in talks over a packaging and assembly site in Italy.

Its initial investment will hit around $36 billion.

That will help meet surging demand for chips used in computers, cars and other devices.

Shortages of such silicon have dogged big manufacturers over the past year.

The German complex will be sited in the city of Magdeburg, creating about 3,000 permanent jobs.

Another 1,000 roles will be created at the French hub.

Intel says it chose to work in multiple countries to avoid over-exposure to one particular labor market.

The firm may also hope to get more subsidies from different nations.

Italy and others have offered big incentives to woo the company’s investment.