Intel Invests In Europe

last updated on

Intel Invests In Europe

Intel Invests Heavily In Europe

Intel is investing heavily in Europe. It has chosen Germany as the site for its latest chipmaking unit, a part of its $88 billion investment across Europe. The country is strategically selected to cut reliance on imports and simultaneously make the supply of its chips smooth to manufacturers.

The demand for chips has increased simultaneously after the COVID-19 pandemic due to a steep rise in online activities. The semiconductor is trying to catch up with the boom. However, things may not turn up as fast as assumed. The new plan may not come up before 2027.

Meanwhile, it is learned the company is spreading investments simultaneously in several countries including enhancement of its Ireland manufacturing unit, upgrading the packaging site in Italy and improving the research and design facility in France.

The initial spending in Germany would be about 17 billion euros and it is a part of its total spending of 33 billion euros in the region. The price customer is expected to be from the auto industry as technology is being heavily used in cars. Chip shortages in recent years have caused pain to automakers. German automaker Volkswagen revealed to have sold fewer cars in 2021 due to the issue.

The announcement of Intel to build a chip making facility in Germany is a follow-up of recent European Union plans to encourage chip manufacturing facilities in the region with liberal rules in the states and enabling an additional private and public investment of $17 billion.

Stacy Rasgon, an analyst at the Bernstein Research, said with the initial investment the chipmaker could match the ongoing high demand and government subsidies are being used as a strategic weapon.

Meanwhile, it is learned the company will be building two units in Magdeburg and create about 7,000 job opportunities in the construction phase and 3,000 permanent jobs. It is simultaneously believed more tens of thousands of jobs could be created across partners and suppliers.

Trending Stories