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Intel seeks subsidies of $10 billion for European chip plant

Intel wants 8 billion euros ($9.7 billion) in public subsidies towards building a semiconductor factory in Europe, as the region seeks to reduce its reliance on imports amid a shortage of supplies.

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Intel seeks subsidies of $10 billion for European chip plant
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Intel wants 8 billion euros ($9.7 billion) in public subsidies towards building a semiconductor factory in Europe, as the region seeks to reduce its reliance on imports amid a shortage of supplies.

 

It is for the first time Pat Gelsinger has publicly put a figure on how much state aid he would want, as Intel pursues a multibillion-dollar drive to take on Asian rivals in contract manufacturing.

 

What we're asking from both the U.S. and the European governments is to make it competitive for us to do it here compared to in Asia," Gelsinger said in an interview.

 

Gelsinger, on his first European tour since taking charge, met European Commissioner Thierry Breton in Brussels on Friday. The visit followed the launch of a plan for Intel to invest $20 billion in chip production in the United States.

 

Gelsinger is prospecting for a location for a plant in Europe that he says would back Breton's goal of doubling the region's share of global chip output to 20% over the next decade.

 

Breton held talks earlier on Friday with Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's No.1 chip maker ahead of Korea's Samsung and Intel.

 

In separate tweets, Breton described his meeting with Intel's Gelsinger as an "in-depth discussion", while a video call with Maria Marced, president of TSMC Europe, had been a "good exchange".

 

"To meet current & future semiconductor industry demand, Europe will drastically increase production capacity - both on its own and through selected partnerships to ensure security of supply," said Breton.

 

TSMC said the talks with Breton demonstrated its commitment to the region. "Our desire to support our customers as fully as possible means that we’re always willing to establish open communications with governments and regulators wherever they, and we, are based," the company said.

 

In Germany, Gelsinger also met executives from carmaker BMW and telecoms operator Deutsche Telekom, Intel said. Sources said he also visited the headquarters of Volkswagen ,although neither side confirmed this.

 

Gong forward, Gelsinger travels on next week to Israel, where Intel is due to announce a $200 million investment in a new chip development campus and the hiring of 1,000 staff.