Intel To Invest Up To $95 Billion in European Chip-Making Amid US Expansion

Intel plans to build new chip-making facilities in Europe valued at up to $95 billion, responding to a cross-border race to add manufacturing capacity at a time of a global chip-supply crunch. From a report: Intel Chief Executive Officer Pat Gelsinger Tuesday said the company was planning two chip factories at a new site in Europe and could potentially expand it further, with the increases raising the total investment over about a decade to the equivalent of as much as 80 billion euros. The facilities would cater to meteoric demand for semiconductors as computers, cars and gadgets become more chip-hungry. 'This new era of sustained demand for semiconductors needs bold, big thinking,' he said at an auto-industry event in Munich.

Rival Taiwan Semiconductor Manufacturing Co., the world largest contract chip maker, this year said it would spend a record $100 billion over the next three years to increase production capacity. South Korean rival Samsung Electronics last month said it plans to boost investments by one third to more than $205 billion over the next three years, in part to pursue leadership in chip manufacturing. The global chip shortage has hit auto makers particularly hard. Ford Motor and General Motors last week said they were curtailing production because of a dearth of chips. Japan's Toyota Motor last month said that it would cut production by 40% world-wide in September. Intel said it plans to commit manufacturing capacity at a factory in Ireland to the auto-chip sector. And it is standing up a chip-design team to help others adapt designs so they can use Intel's manufacturing capabilities. Intel's contract chip-making business has been courting potential customers in Europe, including automotive companies, the company said Thursday.

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