MUNICH, GERMANY – SEPTEMBER 29: Tim Cook, CEO of Apple, during Oktoberfest 2019 at the Kaeferschaenke beer tent.
Gisela Schober | Choose German Getty Images
Apple has announced plans to create a major new lab in Munich as part of a 1 billion euro ($ 1.19 billion) investment as well as inward investment into Germany over the next three years.
The Cupertino-based company announced Wednesday that it will open a new 30,000-square-meter facility in central Karlstrasse in Munich later next year.
Apple has said it will make Munich its “European Silicon Design Center” and will employ hundreds of new employees in the Bavarian capital.
Apple said the new facility is Europe’s largest research and development site for semiconductors and mobile wireless software, proposing to shut down sites like Arm’s in Cambridge and NXP in Eidenhoven.
The news comes as the world struggles through a chip shortage that has plagued the automotive sector and other industries. The global chip shortage has worried governments around the world. Semiconductors are used in almost all electronic devices, from laptops and mobile phones to the brake sensors in our cars.
Engineers at Apple’s new facility will focus on future 5G and wireless technologies, Apple said, adding that they will also be developing modems for Apple products.
Apple has 4,000 employees across Germany and already employs 1,500 engineers across seven offices in Munich. Some may be secured under one roof when the new building is completed.
Apple said the existing engineers in Munich are working on areas such as power management design, application processors and wireless technologies. Together, they have improved performance and efficiency on iPhone, iPad, Apple Watch, and Mac with the M1 chip, he said.
“I couldn’t be excited about everything our Munich engineering teams will find – from exploring the new frontiers of 5G technology, to a new generation of technologies that deliver power, speed and connectivity. world, “Apple CEO Tim Cook said in a statement.
“Munich has been home to Apple for four decades, and we are grateful to this community and to Germany for being part of our journey.”
Apple says it has spent more than 15 billion euros with more than 700 German companies over the past five years including chip maker Infineon and battery company Varta.
Nathan Beniach, a venture capital investor who backed chip starter Graphcore, told CNBC that the new chip lab is a strong move by Apple and is bullish.
“I think direct integration for Apple means more control over their supply chain and margins, but more importantly the flexibility to design exactly what they need to power the products they want to build, “he said.” Compared to building with what is available or forcing suppliers to do so. “
Munich is one of the leading technical centers in Europe and is used by other technical giants for R&D – Google employs around 1,000 people in the city. It is also home to car giants like BMW and Audi, which have thousands of engineers that Apple could hire for the reported Apple car project.
On Tuesday, the European Union announced plans to become less reliant on technologies traditionally developed outside the bloc, such as ramping up chip production.
Apple is not the only one setting up a new chip lab in Europe, which is home to some of the best universities in the world. Chinese tech giant Huawei received the green light in June last year to build a £ 1 billion chip research facility in Cambridge, England.