European semiconductor offensive begins

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Finally. We already know where the integrated circuit factory that Intel plans to build in Europe will be located. Pat Gelsinger, the company’s CEO, has just announced that its new European mega-factory will be located in Magdeburg, a city in northeast Germany located about 150 km from Berlin. The American company will invest in it $17 billionalthough this will only be the first of the steps it will take to strengthen Europe’s muscle in the semiconductor market.

Ursula von der Leyen, the president of the European Commission, has also participated in Intel’s announcement with a very clear purpose: to give visibility to the strategy that the European Union is implementing to increase Europe’s weight in the world market for chip manufacturing. According to Intel currently 80% of integrated circuits they are made in Asia, and Western countries are determined to do whatever it takes to reduce their dependence on major Asian producers.

Europe plans to take over 20% of world chip production in 2030

The 17 billion euros that Intel will invest in the factory in Germany (actually two production centers will reside in Magdeburg, and not just one) are part of the IDM 2.0 strategy that Pat Gelsinger unveiled in March 2021. However , this company will invest over the next decade a total of €80 billion to strengthen Europe’s role in this industry. This is, in short, the most forceful message that Gelsinger and von der Leyen have defended together.

An industry in the hands of TSMC and Asian factories: the map of world chip production

His plan seeks to ensure that Europe is done with a 20% fee of the global semiconductor market by 2030, but getting there is not going to be easy. And it is not going to be because this objective requires multiplying current production by two. In any case, the European Union will invest 43 billion dollars to create a much more ambitious European ecosystem of chips than the current one.

It is clear that the choice of Intel favors Germany, a decision that Gelsinger has defended, arguing, not without reason, that this European country has demonstrated for decades that it has an extraordinarily strong production capacity. However, this executive has also anticipated that his next investments will also fall on four other European countries until they reach the 80 billion euros that we talked about a little above.

Pat Gelsinger has anticipated that his next investments will also fall in four other European countries

Ursula von der Leyen and Pat Gelsinger have argued that it is necessary strengthen the entire production chain European semiconductor industry, and the factories are just one link in this chain. The European Union wants other manufacturers to follow in Intel’s footsteps, and plans to use this continent’s capacity for innovation and scientific muscle as a catalyst for this strategy. In any case, Intel will lay the foundation stone by investing in its European research centers.

One of the beneficiaries will be its laboratory in Poland, which will see its budget increased by 50%. In addition, Intel is negotiating the start-up of another factory in Italy. France, on the other hand, will host a new R&D center. And finally, Spain will also benefit through the collaboration that Intel plans to start with the Barcelona Supercomputing Center. One last interesting note: all the facilities that this company will have in Europe will use 100% renewable energy sources, according to Gelsinger.

Finally. We already know where the integrated circuit factory that Intel plans to build in Europe will be located. Pat…

Finally. We already know where the integrated circuit factory that Intel plans to build in Europe will be located. Pat…

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