Intel to invest up to 80 billion euros to increase EU chip capacity: CEO Pat Gelsinger

Intel said it could invest up to EUR 80 billion (about INR 6,97,050 crores) over the next decade to increase chip capacity in the European region and will open its semiconductor plant in Ireland to automakers.

Intel CEO Pat Gelsinger, speaking at the IAA Motor Show in Munich, also said the company will announce the locations of two new chip factories in Europe by the end of the year.

There is speculation about possible production sites, with Germany and France being the main competitors, while Poland, where Intel is also present, also pictured.

The CEO said the goal was a “total project of EUR 80 billion (about INR 6,97,100 crores) over the next decade, which would be a catalyst for the semiconductor industry…a catalyst for the entire technology industry. “

Intel, the largest maker of processor chips for PCs and data centers, announced in March that it planned to open its chip factories for external use.

Gelsinger told Reuters in April that the company wanted to start making chips for automakers within six to nine months to help alleviate the shortage that has halted vehicle production worldwide.

It’s unclear whether the latest announcement means Intel will achieve that goal.

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

The “Intel Foundry Services Accelerator” aims to help automakers learn to make chips using what Intel calls “Intel 16” chip manufacturing technology and later migrate to “Intel 3” and “Intel 18A” technologies “.

These manufacturing processes would be much more advanced than most processes used today in the automotive industry. Intel said nearly 100 automakers and key suppliers – including BMW AG, Volkswagen AG, Daimler AG and Bosch – had expressed support for its programs. An Intel spokesman declined to confirm whether any of them had committed to becoming a customer.

Gelsinger was quoted as saying that Intel wants the EU to provide state aid for Intel’s European investment proposal.

Intel views automakers as a key strategic priority. Gelsinger said on Tuesday that the company believes chips will represent 20 percent of the cost of vehicles by 2030, a fivefold increase from the 4 percent cost in 2019.

© Thomson Reuters 2021


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