Intel was in talks to build a chip factory in Germany, according to Reuters.
Germany’s southern state of Bavaria was in talks with the US chip giant for the factory, the local Economy Minister Hubert Aiwanger said.
Bavaria has suggested a disused air base in Penzing-Landsberg, west of Munich as a possible location for the factory, Aiwanger said.
The state is home to German automobile giant BMW.
Intel’s new fab will likely be for foundry, to manufacture automobile chips.
Europe is hoping to reduce its reliance on foreign chips and account for 20% of the global production of chips by 2030. It is planning to spend 160 billion euros for the plan.
In March, Intel CEO Pat Gelsinger announce what the company calls IDM 2.0 plan, in which it will strengthen its capacity in foundry, or contract chip production.
The company has already announced that it will spend US$20 billion for the construction of two new fabs in Arizona.