Intel to invest up to € 80 billion to increase EU chip capacity

Intel CEO Pat Gelsinger, speaking at the IAA Munich auto show, also said the company will announce the location of two new major European chip manufacturing plants by the end of the year. year.

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Intel to announce location of two new major European chipmaking factories by year-end

Intel Corp said on Tuesday it could invest up to € 80 billion in Europe over the next decade to increase chip capacity in the region and will open its semiconductor plant in Ireland to automakers. Intel CEO Pat Gelsinger, speaking at the IAA Munich auto show, also said the company will announce the location of two new major European chip manufacturing plants by the end of the year. year. There is speculation about possible production locations, with Germany and France seen as the main competitors while Poland, where Intel is also present, is also pictured.

The CEO said the goal was a “total project of 80 billion euros ($ 94.77 billion) over the next decade that would be a catalyst for the semiconductor industry … a catalyst for the ‘whole technology industry’. Intel, the largest maker of processor chips for PCs and data centers, in March announced plans to open its chip factories to third parties. Gelsinger told Reuters in April that the company wanted to start producing chips for automakers within six to nine months to help alleviate a shortage that has disrupted vehicle production around the world.

Intel CEO Pat Gelsinger announced the plan during a speech at the IAA Munich auto show

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It’s unclear if the latest announcement means Intel will meet this target. “Cars become computers with tires. You need us and we need you … The aim is to create an innovation center in Europe, for Europe,” said Gelsinger. The “Intel Foundry Services Accelerator” aims to help automakers learn how to make chips using what Intel calls its “Intel 16” chip-making technology and later switch to its “Intel 3” technologies and “Intel 18A”.

These manufacturing processes would be much more advanced than most of the processes currently used in the automotive industry. Intel said nearly 100 key automakers and suppliers - including BMW AG, Volkswagen AG, Daimler AG and Bosch - have expressed support for its programs. An Intel spokesperson declined to confirm whether anyone has committed to becoming a customer.

Gelsinger was quoted saying that Intel wants the EU to engage state aid in Intel’s European investment plan. Intel sees automakers as a key strategic priority. Gelsinger said on Tuesday that the company estimated chips will account for 20% of the cost of vehicles by 2030, a five-fold increase from the 4% of the cost in 2019.

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