Apple chooses Germany for €1bn semiconductor design factory
US tech giant Apple has chosen Munich as the location of its new 30,000-square metre chip production factory as part of a €1 billion investment in Germany over the next three years.
Once completed, the site is set to be Europe's largest research and development site for mobile wireless semiconductor and software, as the EU plans to transform the bloc into a powerhouse of chip production, setting itself ambitious plans for the future.
Read more: EU sets 2030 target for semiconductors and quantum technology
The Commission has laid out plans for the bloc to produce as much as one-fifth, or 20%, of the world's semiconductors by 2030.
Apple has said its new project will create hundreds of new jobs in the city, styling the project as its "European Silicon Design Centre."
The announcement has come as the world is currently gripped in a semiconductor shortage which has brought production in industries such as the automotive and electronics sectors to a crawl.
It has hindered the plans of automotive companies to deliver on their plans for increased electrification and has resulted in numerous electronics products constantly being out-of-stock.
The shortage is mostly the fault of the coronavirus pandemic, which has not only ruptured supply chains but also led to a surge in electronics demand, both of which have resulted in these shortages.
Apple has announced its engineers at the new site will focus on 5G and future wireless technologies with plans to also develop modems for future Apple products.
Apple's CEO Tim Cook said in a statement: “I couldn’t be more excited for everything our Munich engineering teams will discover — from exploring the new frontiers of 5G technology to a new generation of technologies that bring power, speed, and connectivity to the world."
The tech giant already has a roster of 4,000 workers across Germany and already employs 1,500 engineers in its seven offices in Munich.
“Munich has been a home to Apple for four decades, and we’re grateful to this community and to Germany for being a part of our journey," he added.
In the same announcement, Apple claimed that it has spent over €15 billion with over 700 companies in Germany over the last five years including chip firm Infineon.
Read more: Samsung considering 4 US sites for $17b chip plant
Munich is already something of a hub for chip development, with companies such as Fraunhofer Group working in the microelectronics sector as well as several major R&D institutes being located in the region.
This expansion follows a $600 million deal between Apple and Anglo-German chip provider Dialoug Semiconductor in 2018 for its in-house team for the development of electronics products such as the iPad and iPhone.
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