Europe waits its turn as Intel commits to new U.S. chip factories

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BERLIN/STOCKHOLM (Reuters) – Intel’s announcement that it’s going to make investments greater than $20 billion in two new semiconductor crops within the United States is in sharp distinction to its silence on European plans initially flagged final 12 months.

The firm stated in September that it may make investments as a lot as $95 billion in Europe over the subsequent decade and announce the places of two main new European chip fabrication crops by the top of 2021.

But no announcement has been made, whereas Intel on Friday laid out plans to construct an enormous new manufacturing website close to Columbus, Ohio.

Analysts stated the corporate may very well be ready for the introduction of new laws earlier than deciding on a European location. The European Chips Act goals to scale back the continent’s dependence on Asian suppliers for superior semiconductors by subsidising the native growth of enormous chip factories.

Intel has been in talks with governments of varied European nations as it scouts for a location, together with these of Germany and Italy.

“We are excited in regards to the conversations we’re having … Details are confidential, however we’ll make an announcement as quickly as doable,” an Intel spokesperson stated.

Gartner chip analyst Alan Priestley stated that with the deliberate Ohio website, strain on Intel to find a website in Europe may have decreased.

“They may additionally delay the choice in the event that they count on the European Chip Act to have materials affect on the financing,” he added.

The European Commission will suggest the laws in early February, and business analysts count on it to cross later this 12 months.

However, any extra capability would want to begin being constructed out now, as it might probably take three to 4 years for a chip manufacturing unit to attain a big output stage, stated Ondrej Burkacky, a senior accomplice at McKinsey.

Germany tops the listing of potential candidates with the native governments of Penzing in Bavaria and Magdeburg and Dresden in japanese Germany attempting to tempt Intel.

However, the mayor of Penzing informed Reuters in December that he by no means heard again from Intel.

European carmakers have been pressured to lower manufacturing due to chip shortages final 12 months as they jostled with client electronics makers to purchase semiconductors.

Most of chips utilized by European firms come from three Asian suppliers – Taiwan Semiconductor Manufacturing Co, Samsung, and United Microelectronics.

(Reporting by Supantha Mukherjee, European Technology & Telecoms Correspondent, based mostly in Stockholm, Nadine Schimroszik in Berlin; extra reporting by Elvira Pollina in Milan; Editing by Kirsten Donovan)



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