IntelIt announced Tuesday that it would invest more than 33 billion euro ($36 billion), in boosting chipmaking within the European Union to help it become more self-reliant with semiconductors.

Santa Clara, California-based chipmaker saidAs part of its investment in Madgeburg Germany, it will create two new factories. This is being sub-sidized with public money. According to Intel, construction will begin in the second half of 2023, and production will start in 2027 if there aren’t any regulatory issues.

Because of its talent pool and infrastructure, and the presence of customers and suppliers in Germany, the company said Germany was the ideal location to create the new “Silicon Junction” megasite.

Intel stated that around 17 billion euros would be invested into the German facilities. The company also said it expected the investment to generate 7,000 jobs in construction and 3,000 permanent positions at Intel.

Intel also pledged to create a new R&D and design hub in France, and to invest in R&D, manufacturing and foundry services in Ireland, Italy, Poland and Spain.

The investment in the expansion of Leixlip’s production space is estimated to amount to 12 billion euros. Intel claimed that it would have invested 30 billion euro in Ireland after the expansion was completed.

Intel stated that it was in negotiations with Italy for a new, 4.5-billion euro manufacturing plant.

Two years ago, some semiconductors were in short supply. The Covid-19 pandemic caused supply chains to be stretched and electronics demand soared.

Europe is working to lessen its dependence on Asia for semiconductors. However, setting up chip-foundries will cost billions.

Intel, along with two other chipmaking giants is Intel TSMC SamsungAccording to, the investment are part of an overall package which will see the company investing as high as 80 billion euro in Europe over the course of the next decade.