Investments Intel plans at least $ 20 billion chip factory investment in Europe, production site now being sought

In order to gain stronger political support for its project from Europe, Intel has planned to decentralize production to several different countries.

Technology company Intel plans to invest at least $ 20 billion, or nearly $ 17 billion, in semiconductor manufacturing in Europe, tells the financial newspaper Financial Times.

Investment plans have their roots in a global chip shortage that plagues almost every industry, from the automotive industry to computers. Chips, i.e. semiconductor parts made of silicon wafers, are used almost everywhere.

Read more: The microchips ran out

CEO of Intel Pat Gelsinger has evaluatedthat chip shortage may last for years.

Chips the end of the world made Europe wake up to how dependent it is on other countries in semiconductor manufacturing.

Among other things, the German Chancellor Angela Merkel is expressed concerns that Europe itself will not be able to produce the semiconductors it needs to compete in car manufacturing and the development of smart devices.

Similar speeches have been made from other European leaders. With the chip deficit, the European Commission will be in March set as its goal increase European semiconductor production to 20% of world production by 2030.

Intel may be one of the parties that would increase the production volumes of European semiconductors in the future. However, the company needs both political and financial support from the EU.

The company’s CEO Pat Gelsinger has recently met with both the President of France Emmanuel Macronin the Italian Prime Minister Mario Draghin to discuss increasing production volumes in Europe.

Intel CEO Patrick Gelsinger met with French President Emmanuel Macron last month.

In addition to financial support, Intel would need an area of ​​about 1,000 hectares in Europe with a sufficiently developed infrastructure to build chip factories. There should be room in the area for the construction of up to eight production facilities.

According to the Financial Times, Intel has looked for potential areas in at least Germany, France, the Netherlands and Belgium.

In the past, the chip industry in Europe has been boosted by, among others, the German Bosch, which opened last month A € 1 billion chip-focused semiconductor plant in Dresden, Germany.

At that time, the German State contributed EUR 200 million to the construction of the plant as part of the European Union’s investment framework.

Provided the project will be launched, Intel would initially set up two production facilities in the area with a total investment of about $ 20 billion over ten years. The amount corresponds to about 17 billion euros.

According to Intel, if eight production plants were to be built in the region, the total investment in the region could exceed $ 100 billion, or more than 80 billion euros.

In order to gain stronger political support for its project from Europe, Intel has planned to decentralize production to several different countries.

“For example, we could set up a production facility at one site and packaging at another,” Intel vice president Greg Slater commented to the Financial Times.

According to Slater, the aim would be to have an efficient production chain operating in several different countries instead of individual independent sites.

“We believe this is a project that will benefit the whole of Europe.”

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