As Intel pledges to develop new chip manufacturing in the United States, Europe kept waiting

As Intel pledges to develop new chip manufacturing in the United States, Europe kept waiting ...

BERLIN/STOCKHOLM, Jan 21 - Intel intends to grow its European chip manufacturing capabilities, despite the delayed announcement on Friday of a more than $20 billion investment in two new semiconductor enterprises.

In September, the company announced that it could invest as much as $95 billion in Europe over the next decade and announced that two major European chip manufacturing plants would be established by the end of 2021.

Despite the deadline being missed, Chief Executive Patrick Gelsinger told Reuters on Friday that European manufacturing plans are still on the cards and the company will announce the chosen manufacturing sites in the coming months.

"We are a say-do company," says the former president. "I hope that the European Union to complete their chips act, and we will continue to follow it shortly with our next major announcement in Europe."

By subsidizing the local development of large chip factories, the European Chips Act intends to reduce the continent's dependence on Asian suppliers for advanced semiconductors.

The European Commission will propose the legislation in early February, and industry experts anticipate it to be passed later this year. The issue is threatening as a result of the global chip shortage which has forced European automakers to cut production.

Intel has been in discussions with governments, including in Germany and Italy, as he seeks a European location, and Gelsinger said the chipmaker is still planning to develop a multi-fabrication site.

"Beyond that we haven't quite sized our dimensions exactly, what we will be able to be at this point in time," he added.

Intel is planning to build a massive new manufacturing facility near Columbus, Ohio, on Friday, putting its investment in up to $100 billion to make it potentially the world's largest chip-making facility.

Alan Priestley, an analyst for Gartner chips, said that with the Ohio site, pressure on Intel to locate a site in Europe might have been reduced.

Penzing's mayor claimed in December that he had not heard from the company.

McKinsey senior partner, Ondrej Burkacky, said any additional capacity would need to be built out now as it can take three to four years to reach a significant output level.

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