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. iPhone 17 Slim Design, Price Range, Specifications Revealed in New Leak
  2. Vivo Y300 5G With Snapdragon 4 Gen 2 SoC Launched in India: See Price
  3. Study Reveals the Shape of a Photon for the First Time Ever
  4. Oppo Find X8 Series With Hasselblad Cameras Launched in India: See Price
  5. Redmi Note 14 5G Series Will Be Launched in India on This Date
  6. Samsung Galaxy S25 Ultra May Cost More at Launch Than Galaxy S24 Ultra
  7. Samsung Galaxy S25 Ultra Dummy Units Hint Towards This Big Design Change
  8. iQOO 13 Key Specifications Revealed Ahead of Upcoming Debut
  9. HMD Fusion India Launch Teased; to Be Available on Amazon
  10. Android 16 May Automatically Hide Sensitive Notifications on Lock Screen
#Latest Stories
  1. Oppo Pad 3 Pro With Snapdragon 8 Gen 3 Leading Version SoC, 9,510mAh Battery Launched
  2. Android 16 Will Reportedly Automatically Hide Sensitive Lock Screen Notifications
  3. Vivo Y300 5G With Snapdragon 4 Gen 2 SoC, 50-Megapixel Camera Launched in India: Price, Specifications
  4. Five Charged in US for Crypto Hacking Spree Using ‘Scattered Spider’ Method: Details
  5. Disney Bets on Korean and Japanese Originals in Asia Growth Push
  6. iPhone 17 Slim Design, Price Range Leaked; Tipped to Get Single Rear Camera, 24-Megapixel Front Camera
  7. Apple Said to Be in Discussions With Several Indian Firms to Replace Chinese Suppliers
  8. Oppo Find X8 Series to Get Google’s Gemini AI Features, Circle to Search With ColorOS 15 Update
  9. Meta Rolls Out AI-Powered Backgrounds, HD Video Calls and More for Messenger Calling
  10. Google Faces Call from DuckDuckGo for New EU Probes into Tech Rule Compliance
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 »