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Why Europe’s semiconductor industry is interesting to Intel
U.S. technology giant Intel plans to invest 20 billion euros in the semiconductor industry in Europe. This decision was dictated by the urgent problem of the shortage of this material.
The pandemic and its consequences had a serious impact on the semiconductor market, which affected a large number of industries. The closure of borders, the impossibility of mandrels and the global lockdown forced companies to think about diversifying their business. This involves distributing production capacity to different companies, and using their own resources as well.
This is the strategy followed by Intel, which is already adapting its internal processes to the new realities of the world. Thus, the company wants to regain the leading position on the market, which, due to the progress of other players, was lost.
Now one of the main issues for the American manufacturer is the ability to expand chip production. Intel intends to find other regions for this to avoid dependence on capacity in China.
Within the framework of this issue there was a meeting of the head of the American company with representatives of a number of European Union countries. The conversation was aimed at the search of possibilities for investing into the production of semiconductors in the territory of Europe. Before the meeting, the Intel analysts conducted a detailed market research and agreed on the opinion that the amount of investments in 20 billion Euros is quite enough to eliminate the shortage of semiconductors. To implement this project, the corporation plans to build modern factories, the operation of which is scheduled for 2030. These facilities will occupy a 20% share of the total chip production market.
However, so far representatives of Intel and the European Union have not come to a clear vision of the solution to this problem. No official agreement has been received, and the details of the negotiations are unknown. In addition, there are no changes in the work of the Intel plant, which is located in Ireland.
It should be noted that the European Union is also working on the development of the semiconductor industry. Earlier this year, an agreement was signed between 17 EU states, which implies the development of a new generation of processors. The declaration amounted to 145 billion euros, which will be allocated for 3 years. The funds will be used to produce chips of up to 2 nm size, which will be equipped with data protection features. Thus the Government of the European Union wants to bring the local segment of semiconductor products to the leading position in the world.
Experts note that this large-scale project is important for the EU, as it is aimed at reducing the dependence of the region on other countries. This is especially important given the increase in sectors where chips are used, including medical equipment, automotive industry and more.
According to the declaration, the allocated funds will be used for those projects that are not financed by private capital. This applies to options with a high level of risk or the risk of loss.