Europe continued to wait while Intel committed to a new U.S. chip factory

Berlin / Stockholm — Intel intends to develop European chip manufacturing capacity despite delays in planning with more than $ 20 billion in investment in two new semiconductor plants in the United States on Friday.

The company said in September that it could invest $ 95 billion in Europe over the next decade and announce the location of two major new European chip manufacturing plants by the end of 2021.

Despite missing that deadline, CEO Patrick Gelsinger told Reuters Friday that European factory plans are still on the card, and the company announces selected manufacturing sites in the coming months. He said.

“We are a company to say,” he said. “I hope the European Union will finish Chip’s actions and soon follow the next major announcement in Europe.”

The European Chips Act aims to reduce the reliance on Asian suppliers for advanced semiconductors by subsidizing the local development of large chip factories.

The European Commission proposed a bill in early February, and industry analysts expect the bill to be passed later this year. The problem is imminent as European automakers are forced to cut production due to a global chip shortage.

As Intel is scouting European locations, it is in talks with governments, including Germany and Italy, and Gelsinger said US chipmakers are still hoping to develop a multifabrication site.

“Beyond not sizing the dimensions exactly, how big or bold at this point,” he added.

On Friday, Intel announced plans to build a large new manufacturing site near Columbus, Ohio, with plans to invest up to $ 100 billion to make it the world’s largest chip manufacturing complex.

Gartner chip analyst Alan Priestley said the Ohio site could have eased Intel’s pressure to deploy the site in Europe.

Germany is at the top of the list of potential hosts in Penzing, Bavaria, and the local governments of Magdeburg and Dresden in eastern Germany trying to seduce Intel. Mayor Penzing told Reuters in December that he had no response from the company.

Ondrej Burkacky, McKinsey’s senior partner, said chip factories could take three to four years to reach critical production levels, so additional capacity needs to be built right now.

By Nadine Schimroszik and Supantha Mukherjee