Intel is investing as much as 80 billion euros in rising the chip capability of the EU CEO

© Reuters. FILE PHOTO: Intel CEO Pat Gelsinger attends a meeting of international business leaders on June 28, 2021 in Versailles, France. Stephan de Sakutin / Pool via REUTERS / File photo

By Stephen Nellis and Victoria Waldersee

(Reuters) -Intel Corp said Tuesday that it could invest up to € 80 billion in Europe over the next decade to boost the region's chip capacity and open its semiconductor plant in Ireland to automakers.

Intel (NASDAQ 🙂 CEO Pat Gelsinger also said at the Munich Motor Show IAA (NYSE 🙂 that the company will announce the locations of two large new European chip factories by the end of the year.

There is speculation about possible production locations, with Germany and France being the leading competitors, while Poland, where Intel is also present, is also in the picture.

The CEO said the goal was "a total project of 80 billion euros ($ 94.77 billion) over the next decade that would be a catalyst for the semiconductor industry … a catalyst for the entire technology industry".

Intel, the largest manufacturer of processor chips for PCs and data centers, announced in March that it would open its chip factories to outsiders.

Gelsinger told Reuters in April that the company would start producing Chips are said to be starting within six to nine months for automakers to alleviate a shortage that has impacted vehicle production around the world.

It's unclear whether the latest announcement means Intel will achieve this goal.

"Cars are becoming computers with tires. You need us and we need you … The aim is to create an innovation center in Europe, for Europe," said Gelsinger.

The "Intel Foundry Services Accelerator" is intended to help automobile manufacturers manufacture chips with what Intel calls "Intel 16" chip manufacturing technology and later switch to the "Intel 3" and "Intel 18A" technologies.

These manufacturing processes would be far more advanced than most of the processes currently used in the automotive industry. Intel said that nearly 100 automakers and major suppliers – including BMW AG, Volkswagen AG (OTC :), Daimler AG (DE 🙂 and Bosch – had supported their programs. An Intel spokesman declined to confirm whether anyone had committed to becoming a customer.

Gelsinger was quoted as saying that Intel wanted the EU to provide state aid for Intel's planned European investment offensive.

Intel sees automakers as one of the top strategic priorities. Gelsinger said Tuesday that the company believes chips will account for 20% of vehicle costs by 2030, a five-fold increase from 4% of the cost in 2019.

($ 1 = 0.8442 euros)

Disclaimer: Fusion Media would like to remind you that the information contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price, meaning that prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may incur as a result of using this data.

Fusion Media or any other person involved in Fusion Media assumes no liability for any loss or damage that might arise from reliance on the information contained on this website, including data, prices, charts and buy / sell signals. Please inform yourself comprehensively about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment.

Related Articles