Pat gelsinger, CEO of Intel, announced that they plan to invest 80 million euros ($ 95 billion) for expand its production of processors to Europe (via The Wall Street Journal). This movement, of course, is related to the global shortage of chips that have the entire technology industry on edge. Dependence on the Asian supply chain, which has not been able to meet the huge demand for components, has led to product delays and even the suspension of operations of some manufacturers.
Intel’s goal is precisely to be able to meet the demand for processors from its partners, since it is clear that orders will grow steadily in the future. Intel would initially build two production plants in Europe. “The facilities would meet meteoric demand for semiconductors as computers, cars and devices become more dependent on chips,” the outlet said.
Intel sets its sights on European automakers
One of the reasons they chose Europe is because have started conversations with companies in the region to become their suppliers. Among them are some from the automotive sector, although they did not specify which ones.
Car production is one of the hardest hit by the chip shortage. Companies like General Motors, for example, were forced to suspend your operations because they do not have the necessary components to continue the manufacturing process. Just the week before, we announced that GM temporarily closed four plants in the United States, two in Mexico and one in Canada.
If the above were not sufficiently concerning, Toshiba cautioned that shortages could last until the end of 2022. So, in the midst of the crisis, Intel has identified a unique opportunity to win over new customers. “This new era of sustained demand for semiconductors calls for big and bold thinking,” stated the Intel CEO. Before exploring the old continent, Intel can already boast that it has Qualcomm in its client portfolio.
TSMC and Samsung will also open the wallet
However, the California company is not the only one planning to tackle the shortage with a multi-million dollar investment. TSMC (Taiwan Semiconductor Manufacturing Company), the world’s largest semiconductor foundry company, anticipated that they will invest $ 100 billion in the next few years to increase production. Samsung Electronics, for its part, will do the same with 205,000 million dollars.