Intel Plans €80 Billion Investment in European Chip Plant

Intel CEO Pat Gelsinger unveiled plan to invest €80 billion in new semiconductor manufacturing facilities in Europe over a ten-year period. It is a result of company's strategy to drastically increase its global capacity.

The plan follows the announcement of $20 billion being spent on two facilities in the US and a subsequent deal with Qualcomm to make chips for the smartphone semiconductor giant at its new foundry division. Alongside increasing its existing facility in Ireland, Intel plans to create a major mega fab in Europe. It is set to reveal the location by the end of the year. Initially the new site will comprise two factories, with this eventually being extended to eight.

Gelsinger noted the new facility would be a catalyst for the semiconductor industry and supply chains, noting Europe had suffered a decline in chip manufacturing over many years. In 1990 the continent represented 44 per cent of the global semiconductor industry, with this down to 9 per cent in 2021, he said. Gelsinger added Intel would create a centre for R&D that brings together Europe to reverse this terrible decline, create a more globally balanced supply chain, and create a centre of R&D and technology innovation in Europe.