Intel chose the city of Magdeburg in eastern Germany to set up their chip factory in Europe.

Reuters, citing a source, said plans for the plant in Magdeburg would be announced on March 4. Germany ranked among the highest potential locations for Intel chip factories, local governments in Penzing (Bavaria) and Magdeburg and Dresden in east Germany seeking to attract Intel's attention.

The US company said in September 2021 it was likely to invest US$95 billion in Europe over the next ten years.

Intel originally wanted to announce two chip factory locations in Europe by the end of 2021, however, that didn't happen.

Intel CEO Patrick Gelsinger flew to Europe last year. Germany is a prime candidate because of its government subsidies, stability and availability of skilled workers.

It is not clear when Intel's chip factory will begin construction. In addition to Germany, Intel is reportedly also eyeing France and Italy for a design center and packaging factory.

Intel in January announced plans to build a chip factory in Ohio, United States, worth 20 billion dollars

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