What happened: Intel plans to spend billions on new factories in Germany and Israel, marking the largest foreign investments in both countries by an outside company. What the numbers say: Intel plans to invest €30B ($33B) in Germany for constructing advanced chip fabs, including two semiconductor facilities in Magdeburg. The German government will contribute subsidies of €10B ($10.91B) toward the project. In Israel, Intel intends to invest $25B in a new chipmaking fab, which will begin operations in 2027 and continue until at least 2035. As part of the agreement, Intel will pay a 7.5% tax rate in Israel, up from the current 5%. What brands should care: TSMC, the world's biggest contract chipmaker, is also expanding into Europe and in talks with the German government for subsidies to cover up to half of the estimated €10B cost of a plant in Dresden. Why it matters: Intel is expanding its presence through other projects, including a semiconductor plant in Poland, an R&D hub in France, and investments in the U.S., Ireland, Italy, and Spain. The expenses are expected to significantly boost Intel's current valuation of buildings and land, which stood at $44.8B last year.
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