Intel has serious plans with Europe

The chip maker is thinking of multiple facilities so it can attract more government support.

Pat Gelsinger, CEO of Intel in Europe, discussed in early May the conditions under which they could build their new plant on the continent. Dresden, Penzing in Bavaria, France and the Benelux states were also mentioned as venues. The manager then mentioned 6-8 state-of-the-art factories to French President Emmanuel Macron and German Chancellor Angela Merkel, then met with the prime ministers of the Netherlands, Belgium and Italy and later identified Poland as a possible location. Gelsinger said in early October that there were a total of 70 sites in the ten EU member states for the future plant.

Ann Kelleher, Intel’s head of development stated, that it is very important for them to make the encapsulation of the chips in their own facility, regardless of the semiconductor production. However, the two things don’t necessarily have to happen in one place. Encapsulation is extremely important to Intel, a key component of their technology and an important part of their products. It also pays off commercially because investments can be spread across a number of countries and support can be raised from multiple governments.

This is a novelty, as it has so far been a $ 10 billion chip factory with 40 percent, or $ 4 billion, local support expected. Final assembly is much cheaper, though still in the order of a billion dollars: a plant is being built in the US state of New Mexico for $ 3.5 billion. In Europe, they are currently being built in Ireland, where the size of their branch offices is already significant, while on the continent, the regions that have the most hope for investment are those where there is already a tradition of chip production.

Kelleher is one of Intel’s top man confidants, joined the company in 1996 and was appointed one of seven executive vice presidents in mid-November. Its job is to get the giant back to the top of the world in terms of technology. Kelleher is confident they are well on their way to technologically overtaking Taiwan Semiconductor Manufacturing Company (TSMC), AMD and nVidia. According to him, this could happen by the middle of the decade.

Investors do not think so. After the announcement of quarterly earnings figures, Intel’s stock price plummeted, worth less than at the beginning of the year. In contrast, Nvidia doubled over the same period, so they value the company three times as much as Intel. Nor can European support be assured. Internal Market Commissioner Thierry Breton and Vice-President Margrethe Vestager do not see the point in supporting the American company with taxpayers’ money, but of course individual countries can still get into the business. Intel is waiting for an answer by the end of the year, Gelsinger has repeatedly stated that he wants to make a decision by the end of this year.

Source: Hírmagazin by

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