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Intel has said it can spread its planned $20 billion investment in a European chip factory across multiple member states. Intel previously said the company is considering several locations, including Germany and the Benelux.
By these statements, Intel means that the company could carry out different production steps in different European countries, the company writes Financial Times. With this, the company hopes for financial and political support from the EU for its expansion plans within the continent. “We could put production in one location and the packaging on another,” says Intel-vice-president Greg Slater to the paper. Slater is part of the team exploring the possibilities for Intel’s expansion in Europe, according to the Financial Times.
Research and development activities could also be spread across different EU countries. With the plans, Intel would also buy more from European suppliers. “We are in a good position to make these plans an ecosystem-wide project, not just a few isolated trajectories within one Member State. We believe this is a project that will benefit all of Europe,” said the Intel CEO. .
Intel’s initial plans include two chip factories, which would collectively cost $20 billion over a 10-year operating period, according to the Financial Times. This translates into approximately 16.8 billion euros. Total investments could reach $100 billion over the lifetime of the plant, Intel executives say.
Intel previously indicated that it 8 billion euros in subsidy wants for the construction of a European chip factory. This is partly to make it more attractive to build a chip factory in Europe, compared to an Asian country such as Taiwan or South Korea. “The cost disadvantage is 30 to 40 percent over Asia, and much of it is due to government support,” Slater said.
It is not yet known where Intel plans to build its European chip facility. The company previously said it was considering several member states. In an interview with the German Handelsblatt, Intel CEO Pat Gelsinger mentioned, among others, Germany and the Benelux as suitable locations for a chip facility. The Financial Times reports that France is also being considered. Intel currently already has a chip factory in Ireland, which the company is currently preparing for the production of 7nm chips.
French government officials tell that medium that Intel does not only rely on the amount of subsidy a country offers. The company is also looking at the country’s ecosystem and factory location. Intel would like about 1,000 hectares of territory in a member state with developed infrastructure that could handle up to eight chip production facilities, the Financial Times reports.
Intel’s plans according to Europe’s ambition to strengthen its position in the chip sector. The continent wants to invest heavily in its semiconductor sector and hopes to double its market share in global chip production to 20 percent by 2030. The European Commission also wants more advanced chip production within the continent, with 2nm production as the ultimate goal. To that end, it is talking to various semiconductor manufacturers, including Intel.
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