Intel is seeking a $ 10 billion grant from a European chip factory

Brussels / Berlin — Intel wants a € 8 billion ($ 9.7 billion) public grant to build a semiconductor factory in Europe, the region will reduce its reliance on imports amid supply shortages The CEO was reported to have said on Friday.

Pitch is the first time Pat Gelsinger has publicly numbered the amount of national aid he wants, as Intel is pursuing a multi-billion dollar drive to undertake Asian rivals in consignment manufacturing. is.

“What we want from both US and European governments is to make doing it here more competitive than in Asia,” Gersinger told Politico Europe in an interview. ..

Politico said Gelsinger said it was seeking a grant of around € 8 billion. The company later said it said EU leaders needed to invest to secure a vibrant semiconductor industry, but didn’t give specific numbers, moving away from the report.

Gersinger was on his first European tour since he was in charge and met European Commissioner Thierry Breton in Brussels on Friday. The visit followed Intel’s plans to invest $ 20 billion in chip production in the United States.

In addition, Gelsinger says he is looking for a factory location in Europe and supports Breton’s goal of doubling the regional share of global chip production over the next decade.

Breton met with Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), the world’s number one chip maker, ahead of Samsung and Intel in South Korea earlier on Friday.

In another tweet, Breton described the meeting with Intel’s Gelsinger as a “detailed discussion,” and the video call with TSMC Europe president Maria Marced was a “good exchange.”

“To meet the current and future demands of the semiconductor industry, Europe will significantly increase its production capacity on its own and through selected partnerships to ensure supply safety,” Breton said. I am.

TSMC said the meeting with Breton demonstrated its commitment to the region. “Our desire to support our customers as fully as possible means that we are always ready to establish open communication with governments and regulators, and wherever we are based. “The company said.

The Commission said Breton will meet further on May 4 with the CEOs of two Dutch semiconductor players, ASML, a leading manufacturer of semiconductor lithography tools, and NXP, a chip maker.

With the recent turmoil in the semiconductor supply chain, efforts to reduce import dependence are urgently needed, but analysts say Europe’s shrinking technology base provides a viable market for cutting-edge plants, or “fabs.” It warns that it means that it is not provided.

So far, Intel is the only big three chip maker to show concrete interest in Breton’s goal of producing Europe’s most advanced chips, according to industry and diplomatic sources.

Breton’s willingness to attract major foreign chipmakers has disturbed players who grew up in the country, and he is also discussing the creation of a European semiconductor alliance that binds their interests.

Germany’s Infineon said Friday it welcomed Breton’s initiative to step up chip production in Europe.

“Financial resources are naturally limited, so it’s important to discuss the most urgent needs and the most rational investment methods,” says Infineon.

Visit to Germany

Gersinger, who met with Economic Minister Peter Altmaier and Governor Markus Söder of Bavaria in Germany on a European tour, said Germany would be a good place for a potential European foundry.

“Geopolitically, if you are in Europe, you want to be in continental Europe,” he told Politico, echoing in his second interview with the German business Daily Handelsblatt.

“We consider Germany not only a good candidate for building manufacturing capacity, but also a good candidate,” he said, showing interest in the Benelux countries.

In Germany, Gelsinger also met with executives from car maker BMW and telecommunications carrier Deutsche Telekom, according to Intel. He also visited Volkswagen’s headquarters, but neither side confirmed this, according to sources.

Gelsinger will travel to Israel next week. So Intel will announce a $ 200 million investment in a new chip development campus and the hiring of 1,000 staff.

Douglas Busbine

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