Intel boss announces chip factories for 80 billion euros in Europe – also in Germany?
Intel hopes for subsidies for the new factories in Europe – this is the only way to keep the company competitive
Source: dpa-infocom GmbH
After Tesla, the US company Intel also wants to build a mega-factory in Europe. But as a prerequisite, CEO Gelsinger names subsidies of 30 percent. Because Germany is also a possible location, Gelsinger has already met with Chancellor Merkel.
IEight large chip factories are to be built by the US company Intel in Europe, and there are several possible locations for the semiconductor manufacturer in Germany. That reported the “Frankfurter Allgemeine Zeitung”. “We are investing 80 billion euros in Europe,” said CEO Pat Gelsinger. Of this, however, around 30 percent should be covered by public aid. These are necessary in order to be able to survive in competition, especially with the Asian competitors.
“We have to be competitive on the world market – not only in terms of technology, but also in terms of costs. Otherwise we can’t do it here, ”said Gelsinger about the need for subsidies. He has already met with representatives of the EU Commission such as Internal Market Commissioner Thierry Breton, but also with Chancellor Angela Merkel. The federal government has been campaigning for the promotion of the semiconductor industry in Europe for years, since control and memory chips are essential for large German industries such as automotive and mechanical engineering.
At the end of the year, the future location of the so-called mega-fab from Intel with its eight individual factories and all 12,000 employees is to be announced. The groundbreaking ceremony on the five million square meter site is planned for the coming year, and operations are due to start in the middle of the decade.
Both in Europe and in the USA there are programs worth billions to promote the domestic chip industry and to attract foreign manufacturers such as Intel. Government grants have also been available in countries such as Taiwan, South Korea and, above all, China for years. In the US, there will be around $ 50 billion for the industry in the coming years.
EU Commissioner Thierry Breton said in the summer that Europe should have a 20 percent share of the industry in a rapidly growing market by 2030. Today the proportion is less than nine percent. In 2030, the chip industry in Europe is expected to generate revenue of 200 billion euros; today it is almost 40 billion euros. Manufacturers in Asia generate around 250 billion euros a year.
Gelsinger wants to accelerate this process with Intel in a way that is very similar to Elon Musk with the new Tesla factory in Brandenburg, using a rather unconventional approach. “Well, we are grateful to Elon that he stormed forward, turned the clock and showed what is still possible in this country.”
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