Why Intel is building a new factory in the EU?

Intel proposes to diversify $20 billion in factory investment across the EU

🟩 EU wanting to double semiconductor production

The EU has set a goal of doubling semiconductor production to 20% of the global market by 2030. Intel CEO Pat Gelsinger met with French President Emmanuel Macron and Italian Prime Minister Mario Draghi to talk about the global chip shortage and said Intel’s new European manufacturing plant was “in the interest of the entire EU.”

🟩 What are the potential locations for Intel’s new plant?

Intel’s planned investment in a $20 billion new European semiconductor plant could be diverted to several EU countries. He said he was thinking of decentralizing in EU countries so as to benefit Europe as a whole. Germany, the Netherlands, France and Belgium are the candidates, and a decision is expected by the end of the year.

🟩 Potential locations that Intel is looking for

We are looking for infrastructure and human resources for about 400 hectares (equivalent to 90 Tokyo Domes) that can construct up to 8 manufacturing plants. Intel expects to build the first two fabs for about $20 billion, and then a total investment of $100 billion over the life of the plant. Countries are being asked to support their investments.

Intel CommentsState assistance is essential to ensure the competitiveness of factories. In terms of cost, there is a difference of 30-40% in Asia, and the difference is due to government support.


Intel expects EU and European countries to invest in semiconductor production

Intel appears to be negotiating with world leaders to make the terms for a new semiconductor plant in Europe more favorable. While TSMC and Samsung are building new semiconductor plants in Asia → the United States, Intel plans to further expand its production bases worldwide in the U.S. → Europe.

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