Intel to Invest Up to $95 Billion in European Chip-Making Amid U.S. Expansion

Intel has confirmed plans to build at least two new semiconductor factories in Europe. CEO Pat Gelsing outlined the plans in a keynote speech at the Munich auto show, saying the company could invest up to $94 billion in Europe in the next decade.

Intel Chief Executive Officer Pat Gelsinger on Tuesday said the company was planning two chip factories at a new site in Europe and could potentially expand it further, with the increases raising the total investment over about a decade to the equivalent of as much as $94 billion.

The facilities would cater to meteoric demand for semiconductors as computers, cars and gadgets become more chip-hungry.

Intel CEO Pat Gelsinger, speaking at Munich’s IAA auto show, also said the company would announce the locations of two major new European chip fabrication plants by the end of the year.

There is speculation about possible production sites, with Germany and France seen as leading contenders while Poland, where Intel also has a presence, also in the picture.

Gelsinger told Reuters in April that the company wanted to start producing chips for automakers within six to nine months to help alleviate a shortage that has disrupted vehicle production around the world.

It is unclear whether the latest announcement means Intel will meet that goal.

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

The “Intel Foundry Services Accelerator” is aimed at helping automakers learn to make chips using what Intel calls its “Intel 16” chip manufacturing technology and later move to its “Intel 3” and “Intel 18A” technologies.

Those manufacturing processes would be far more advanced than most of the processes currently used in the automotive industry. Intel said that nearly 100 automakers and key suppliers – including BMW AG, Volkswagen AG, Daimler AG, and Bosch – had expressed support for its programmes. An Intel spokesman declined to confirm whether any had committed to becoming customers.