Intel has chosen the east German city of Magdeburg as the site of a large new semiconductor factory, Reuters reports.

The company plans to officially announce the decision on March 4.

Last September, Intel said that it could invest as much as $95 billion in Europe over the next decade and said that it would announce the locations of two new European chip fabs by the end of 2021.

It made no announcements that year, other than to say it wouldn't build in the UK because of Brexit.

The company may have been waiting for more progress with the European Chips Act, which will include billions in incentives for chip development on the continent. Earlier this month, the European Commission officially launched the €43 billion ($49bn) act, but it still requires individual states to agree to invest their portion of the funds.

It is not yet known when Intel plans to break ground at the site, nor when it expects production to start. In January, it confirmed it is building a $20 billion semiconductor fab in Columbus, Ohio. Construction at Licking County will begin this year, with the first phase ready by 2025.

The world is currently in the midst of an acute semiconductor supply crisis.