Intel offers to spread $20bn chip factory investment across EU

U.S. chip maker Intel has lobbied several EU member states to invest in a new European $ 20 billion semiconductor factory planned to win block financial and political support for the project. It states that it may be distributed to.

The group’s chief executive officer, Pat Gelsinger, recently met and discussed with French President Emmanuel Macron and Italian Prime Minister Mario Draghi. Global tip shortage It has hit Europe and beyond.

His visit can make significant amounts of money available to achieve the new goal of doubling semiconductor production to 20% of the global market by 2030, including the manufacture of state-of-the-art chips. Following the signal from the EU.

Talking to the Financial Times, chip maker executives support chip production in multiple member states, suggesting that if Intel’s requirements for a new European manufacturing plant are met, there may be “EU-wide interests” Increased the possibility of expanding facilities and services to do so.

“We were able to put manufacturing on one site and packaging on another,” said Greg, vice president of global regulation at Intel, a member of a team exploring potential expansion in Europe.・ Slater states. R & D can be shared between EU countries, but spending with European suppliers will increase “dramatically”.

“We are in a good position to make this a project for the entire ecosystem, not just some isolated roads in one member state,” he said. “We believe this is a project that benefits Europe as a whole.”

Intel is looking for about 1,000 acres of land where the infrastructure has been developed, as well as financial support. The site can support up to eight chip manufacturing facilities called fabs and provides access to talent. Intel has explored the potential of factories by exploring countries such as Germany, the Netherlands, France and Belgium. The decision is scheduled by the end of the year.

Initially, two fabs were set up, and a 10-year operation would cost a total of about $ 20 billion, he said. Total investment could exceed $ 100 billion for the life of the plant, according to Intel executives.

French officials said Intel is considering bringing fairly advanced 10-nanometer chip technology or better to Europe. Discussions continued on whether this would meet the needs of European customers who now rely on more mature technologies. “It costs a lot of money to get the most advanced technology,” officials said. “We are looking at what is feasible and what is desirable.”

National assistance is essential to ensure the competitiveness of factories. “The cost disadvantage is 30-40% in Asia … and much of it comes from government support,” Slater said.

But Intel wasn’t just looking for a distribution, French officials said. “They are looking at the ecosystem, the location of the site … It’s not just the question of what the state gives them in terms of money. It’s a set of complex elements.”

“We take into account the value of being close to our European customers and put us in a better and stronger position to meet growing demand,” Intel said.

Thierry Breton, a single market commissioner in Brussels and responsible for industrial strategy, said Europe should ultimately aim to produce cutting-edge 2nm chips.

But his ambitions have raised concerns that Europe may be wasting money given the high cost and complexity of manufacturing advanced semiconductors.

Jacob Wallenberg, one of Europe’s most respected entrepreneurs, told the Financial Times that he understands his ambitions, but at great risk. “The question is whether we can catch up. It’s a shame if it’s too costly to actually solve the problem.”

Intel has invested $ 20 billion in two new U.S. plants and an additional 7 billion to double the capacity of its Irish plant as part of a multi-year strategy to catch up with Asian semiconductor giants TSMC and Samsung. I’m investing dollars. The group also plans to bring its state-of-the-art 7nm chip production to its Irish site.