Intel to Invest Billions of Euros in Next-Generation Microchips in EU

US tech giant Intel plans to invest over €80 billion to massively expand its European production facilities, focusing on next-generation microchips measuring two nanometres and smaller, using the latest technology, Christin Eisenschmid, head of Germany at Intel has informed.

Intel wants to make producing cutting-edge chips possible in Europe since, currently, the high-tech semiconductors’ production is mainly limited to Asian manufacturers who currently produce them at three nanometres.

The European Commission has recently declared expanding European microchips production capacities a geostrategic necessity after the ongoing supply bottlenecks for semiconductors have already caused billions of euros in losses for EU companies.

EU’s Commissioner for the internal market, Thierry Breton, has stressed that the COVID crisis exposing the EU’s strategic vulnerabilities has also underscored the bloc’s need to aim for technological sovereignty in the new geopolitical order and to foster its own industrial policy.

With eight semiconductor plants in the pipeline, Intel’s ambitions align with the EU’s strategic goals considering that its target for expanding European production capacities is set at the two-nanometre mark to avoid falling behind in the future technologies’ race.

The consultancy firm Kearney’s study results show that demand for semiconductors will more than double in Europe while the demand for cutting-edge semiconductors will rapidly increase in the next few years from the current 19% to 43% in 2030.

The broad investment drive of Intel under the leadership of new CEO Patrick Gelsinger is part of its efforts to regain lost ground against its rivals such as Samsung and TSMC who can produce more innovative products.

Amid increasing pressure, Intel announced plans last week to also invest around €20 billion in Ohio, rising to €100 billion by the end of the decade.

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