Technology News
English Edition

Intel Keeps Europe Waiting as It Commits to New US Chip Factories

Intel CEO Patrick Gelsinger said that European factory plans were still on the cards.

By Reuters | Updated: 24 January 2022 14:57 IST
Intel Keeps Europe Waiting as It Commits to New US Chip Factories

Intel has been in talks with governments, including in Germany and Italy

Highlights
  • The Chips Act aim to reduce continent's dependence on Asian supplier
  • European Commission will propose the legislation in early February
  • Intel has been in talks with governments
Advertisement

Intel still intends to develop European chip manufacturing capacity despite the delayed plans being overshadowed by its announcement on Friday of a more than $20 billion (roughly Rs. 1,49,330 crore) investment in two new US semiconductor plants.

The company said in September it could invest as much as $95 billion (roughly Rs. 7,09,370 crore) in Europe over the next decade and announce the locations of two major new European chip fabrication plants by the end of 2021.

Despite missing that deadline, Chief Executive Patrick Gelsinger told Reuters on Friday that European factory plans were still on the cards and the company would announce the chosen manufacturing sites in coming months.

"We are a say-do company," he said. "I hope that the European Union finishes their chips act and we would hope to follow that shortly with our next major announcement in Europe."

The European Chips Act aims to reduce the continent's dependence on Asian suppliers for advanced semiconductors by subsidising the local development of large chip factories.

The European Commission will propose the legislation in early February, and industry analysts expect it to pass later this year. The matter is pressing as a global chip shortage has forced European automakers to cut production.

Intel has been in talks with governments, including in Germany and Italy, as it scouts for a European location and Gelsinger said the US chipmaker still expected to develop a multi-fabrication site.

"Beyond that we haven't quite sized our dimensions exactly, how big or bold we are going to be at this point in time," he added.

Intel on Friday laid out plans to build a massive new manufacturing site near Columbus, Ohio, planning to invest up to $100 billion (roughly Rs. 7,46,705 crore) to make it potentially the world's largest chip-making complex.

Gartner chip analyst Alan Priestley said that with the Ohio site, pressure on Intel to locate a site in Europe could have reduced.

Germany tops the list of potential hosts with the local governments of Penzing in Bavaria and Magdeburg and Dresden in eastern Germany trying to tempt Intel. The mayor of Penzing told Reuters in December that he had not heard back from the company.

Ondrej Burkacky, a senior partner at McKinsey said any additional capacity would need to start being built out now as it can take three to four years for a chip factory to reach a significant output level.

© Thomson Reuters 2022

Looking to buy headphones? Listen to the experts on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Intel, EU
Philips Says Supply Chain Issues May Get Resolved in Second Half of 2022

Related Stories

Intel Keeps Europe Waiting as It Commits to New US Chip Factories
Comment
Facebook Gadgets360 Twitter Share Tweet Snapchat LinkedIn Reddit Comment google-newsGoogle News

Advertisement

Featured
Follow Us
Latest Videos
More Videos
Tech News in Hindi
More Technology News in Hindi
Popular on Gadgets
Latest Gadgets
Popular Mobile Brands
#Trending Stories
  1. Moto G35 5G Review
  2. Apple to Discontinue iPhone 14, iPhone SE Sales in These Countries
  3. Here's When the OnePlus Open 2 Might Be Launched in 2025
  4. Samsung Galaxy S25 Slim Specifications Leaked Ahead of Debut
#Latest Stories
  1. iPhone 14, iPhone SE Sales in EU to Be Discontinued Due to Upcoming Regulation: Report
  2. OnePlus Open 2 Launch Timeline Leaked; Might Debut Later Than Expected
  3. Google Blasts Chrome Sale as ‘Extreme’ Remedy at Odds With Law
  4. Samsung Galaxy S25 Slim Specifications Leaked; Might Be Thicker Than iPhone 17 Air
  5. Qualcomm Secures Key Win in Chips Trial Against Arm
  6. OpenAI Unveils 'o3' Reasoning AI Models in Test Phase
  7. Ancient Bronze Statues Unearthed from Etruscan Healing Spring in Italy
  8. Malayalam Action Thriller Mura Now Streaming on Prime Video
  9. Study Explores Sun’s Magnetic Field Changes and Solar Wind Acceleration
  10. Madanolsavam Streaming Now on Prime Video: What You Need to Know
Gadgets 360 is available in
Follow Us
Download Our Apps
App Store App Store
Available in Hindi
App Store
© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »