The chipmaker will also be spreading shedloads of investment in new facilities in France, Ireland, Poland, Italy and Spain.

The new "megafab" will be its second and come on top of other spending commitments in the United States, including a planned mega fab in Ohio.

Intel Chief Executive [Kicking] Pat Gelsinger said: "The world has an insatiable demand for semiconductors,". Today, 80 per cent of chipmaking takes place in Asia, but the company's spending in the US and Europe will mean a "more balanced and resilient" supply chain that isn't so dependent on Asia.”

The Magdeburg site will cost about $19 billion, with construction set to begin in 2023 and manufacturing in 2027, Gelsinger said.

That'll let Intel build its own chips with leading-edge technology, for Intel and through a major expansion of its Intel Foundry Services to build chips for other customers.

Intel will also spend $13 billion to expand its existing fab in Leixlip, Ireland, doubling its size so the company can build chips on its new Intel 4 manufacturing process. Plateau de Saclay, France, will house a 1,000-employee research centre. Intel also will expand its research site in Gdansk, Poland, add a new supercomputing research facility in Barcelona, Spain.

Intel is apparently negotiating on a plan expected to bring its chip packaging technology to Italy.

European Commission President Ursula von der Leyen lauded the investments as important to Europe's high-tech future. "Our goal is to have 20 per cent of the world's microchip production in Europe by 2030. That's twice as much as today in a market that's set to double in the next decade," she said on the video.

Intel expects the Magdeburg fabs will employ 7,000 people during construction and create 3,000 jobs once in operation.