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Intel Corporation plans to produce chips at new facilities
U.S. electronics manufacturer Intel plans to invest in the expansion of production in Europe. To this end, 80 billion euros will be allocated, which will allow the production of chips at new facilities. The strategy to increase semiconductor manufacturing in Europe is designed for 10 years.
It is expected that in the region there will appear two large plants from Intel, these modern facilities will produce a new generation of chips. So far the corporation has not disclosed information on the exact location of the enterprises, however, Germany and France are considered to be the most probable countries so far.
According to the representatives of the American corporation, the project of launching two large capacities gives an excellent impulse for the development of the semiconductor industry. In addition, it is a good stimulus for the global technology industry as a whole. Intel said that chips are now one of the most popular products on the market, they are needed not only for computer equipment. The huge demand for chips is observed in the automotive industry, and today it is necessary to take steps to reduce the problem of semiconductors.
For Intel, the automotive industry is a key chip consumer. According to analysts’ forecasts, by 2030, semiconductors will account for about 20% of the cost of vehicles. This figure will be 5 times higher than in 2019. In order to provide vehicle manufacturers, the corporation organized a separate division, Intel Foundry Services Accelerator. Here Intel specialists share their experience with automakers, training them to produce chips based on the corporation’s technology. According to the U.S. company, about 100 representatives of the automotive industry and major suppliers have declared their intention to participate in the initiative from Intel. Among them are such concerns as BMW, Volkswagen, Bosch and others.
In addition, the U.S. manufacturer intends to launch a factory in Ireland, where they will produce products designed for the needs of the automotive industry. Another important point in its activities, the corporation said, is the dominance of chipmakers in Asia. According to Intel, they limit the development of other market participants. Therefore, the corporation plans to use its resources to build new facilities in the United States and Europe, to meet the demand of local consumers and make its products more attractive to Asian consumers. Intel estimates that the company needs €8 billion in government subsidies to build the plant in Europe. This amount will allow the manufacturer to displace Asian chips from the market and help increase supplies to the auto industry.
As for the expansion of capacity in the U.S., Intel has allocated $20 billion for this, which will go to the construction of new plants and renovation of existing ones.