Intel invests up to € 80 billion in EU chip capacity expansion: CEO


Intel Corp. announced on Tuesday that it could invest € 80 billion in Europe over the next decade to increase chip capacity in the region, opening an Irish semiconductor plant to automakers.

Intel CEO Pat Gelsinger spoke at the IAA Auto Show in Munich, saying the company will announce the location of two major new European chip manufacturing plants by the end of the year.

While Germany and France are considered major competitors, there are speculations about production sites where Intel and Poland, where Intel is located, may be in the picture.

The goal is “a $ 80 billion ($ 94.77 billion) project over the next decade, catalyzing the semiconductor industry … catalyzing the entire technology industry,” the CEO said.

In March, Intel, the largest manufacturer of processor chips for PCs and data centers, announced plans to open its chip factory for outsiders’ use.

Gelsinger said Reuters In April, the company wanted to start producing chips for automakers within six to nine months to alleviate the shortage that has disrupted car production around the world.

It’s unclear if the latest announcement means Intel will reach that goal.

“Cars are becoming computers with tires. You need us, we need you …. The purpose is to make Europe the center of innovation for Europe.” Gelsinger said.

The Intel Foundry Services Accelerator aims to help automakers build chips using what Intel calls “Intel 16” chip manufacturing technology and later move to “Intel 3” and “Intel 18A” technologies. It is said.

These manufacturing processes are far more sophisticated than most processes currently in use in the automotive industry. Intel said nearly 100 automakers and major suppliers, including BMW AG, Volkswagen AG, Daimler AG and Bosch, have expressed support for the program. An Intel spokesman refused to check if anyone had promised to be a customer.

Gelsinger reportedly said he hoped the EU would pledge state assistance to Intel’s proposed European investment promotion.

Intel sees automakers as an important strategic priority. Gelsinger said Tuesday that the company believes chips will account for 20% of vehicle costs by 2030. This will increase from 4% to 5 times the cost in 2019.

By Stephen Nellis and Victoria Waldersee