Intel could invest 80 billion euros in Europe

The goal is a total project of € 80 billion over the next decade.

Intel has announced that it could invest up to € 80 billion in Europe over the next decade to increase the region’s chip capacity and open its semiconductor plant in Ireland to carmakers. Pat Gelsinger, the company’s CEO, also said at the IAA car show in Munich that the company will announce the location of two new major European chip makers by the end of the year.

There are speculations about possible production sites, but Germany and France are considered the main ones, while Poland, where Intel is also present, is also in the picture.

The CEO said that “the goal is a total project of € 80 billion over the next decade, which will be a catalyst for the semiconductor industry and a catalyst for the entire technology industry”.

Intel, the largest maker of processor chips for PCs and data centers, announced in March that it intends to open its chip factories to outsiders. Gelsinger told Reuters in April that the company wants to start making chips for automakers in six to nine months to alleviate a shortage that has disrupted vehicle production worldwide. However, according to The EpochTimes , it is not clear whether the latest announcement means that Intel will meet this goal.

“Cars are becoming wheeled computers. They need us, and we need you. The goal is to create a European innovation center in Europe, for Europe,” Gelsinger said at the IAA car show. The “Intel Foundry Services Accelerator” is designed to help automakers learn how to make chips using a process Intel calls “Intel 16” chip manufacturing technology, with a view to later switching to “Intel 3” and “Intel 18A” technologies.

These manufacturing technologies would be much more advanced than most of the processes currently used in the automotive industry. Intel said nearly 100 automakers and key suppliers, including BMW AG, Volkswagen AG, Daimler AG and Bosch, have expressed support for its programs. An Intel spokesman did not confirm whether any of them were committed to participating as a customer.

Gelsinger was quoted as saying that Intel would like the EU to provide state support for Intel’s planned European investment efforts. The American chip giant sees automakers as a key strategic priority. Gelsinger explained that the company says the chips will account for 20 per cent of vehicle costs by 2030, a fivefold increase from 4 per cent in 2019.