Intel asks for several billion euros of subsidy to set up a foundry in Europe

Intel is willing to set up a foundry in the European Union if the member states invest several billion euros in it. Pat Gelsinger, the CEO of Intel, would have mentioned the sum of 8 billion euros with the Politico Europe site. However, according to Reuters, Intel then distanced itself from this report, saying that no precise figure has been given although it has been made clear that EU leaders will have to invest to ensure a semi-industrial industry. dynamic drivers.

Intel, the most interested
“What we are asking from the American and European governments is to make it competitive for us to produce here rather than in Asia.”, Pat Gelsinger explained. The announcement comes as Intel unveiled a multi-billion dollar plan to get a head start on its Asian rivals. 20 billion dollars will be invested to build two new foundries in the United States. Sunday, May 2, Intel announced that it was completing this plan by investing $ 600 million to strengthen its R&D around autonomous vehicles in Israel and $ 10 billion in a new foundry in this country (see box).

Intel invests $ 600 million in its R&D

Intel announced on Sunday, May 2, 2021 that it wants to invest an additional $ 600 million in Israel to expand its R&D. A logical investment given these recent takeovers of Israeli start-ups: Moovit in May 2020 and Habana Labs at the end of 2019. In detail, says Reuters, $ 400 million will be invested to transform its Mobileye division, headquartered in Jerusalem , into an R&D campus for the development of technologies related to the autonomous car.

$ 200 million will be invested in the construction of an R&D center called IDC12 in the northern port city of Haifa, next to its current development center. The mega chip design center will have a capacity of 6,000 employees. In addition, Intel, which received a subsidy of one billion dollars, confirmed to invest 10 billion dollars in the construction of a new foundry in the country.

Pat Gelsinger is prospecting for a location for a foundry in Europe that would support the plan of Thierry Breton, the European Commissioner for the Internal Market, to double semiconductor production by 2030 to represent at least 20% of world production in value. The CEO of Intel met Thierry Breton on this subject last Friday as did the European manager of TSMC. Intel would be the only foreign player to show interest in the plan, reports Reuters following discussions with several observers and politicians.

Formation of a European alliance?
Thierry Breton summed up his meeting with the boss of Intel as being a deep discussion and the video meeting with the European head of TSMC as a good exchange. TSMC, for its part, assured that the discussions with Thierry Breton demonstrate its commitment in the region. “Our willingness to support our customers as fully as possible means that we are always willing to establish open communications with governments and regulators, wherever they are and wherever we are based,” TSMC said.

Thierry Breton seeks to attract a large foreign founder while discussing the creation of an alliance with European industrialists. A dual strategy which disconcerts some European manufacturers. Within the framework of this alliance, the commissioner will very soon meet with the Germans ASML and NXP. Infineon welcomed Thierry Breton’s initiative to strengthen chip production in Europe. The European Union does not have a local champion in chip production and the search for a foreign partner is probably aimed at filling any technological gaps.

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