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Semiconductor Shakedown: Intel seeks 8 billion euros in subsidies for European chip plant

Daniel Nenni

Admin
Staff member
Germany would be a great place for an Intel fab. How about Dresden?

Global Foundries Dresden.jpg


Or better yet, Ireland?

Intel Ireland.jpg


BRUSSELS/BERLIN (Reuters) - U.S. chipmaker Intel is seeking 8 billion euros ($9.7 billion) in public subsidies towards building a semiconductor manufacturing site in Europe, Chief Executive Pat Gelsinger was quoted on Friday as saying.

Pat Gelsinger Intel CEO.jpg


“What we’re asking from both the U.S. and the European governments is to make it competitive for us to do it here compared to in Asia,” Gelsinger told Politico Europe in an interview.

A spokesman for Intel confirmed the interview took place on Friday in Brussels, where Gelsinger was due to meet European Commissioner Thierry Breton for talks on semiconductor strategy.

Gelsinger, on his first European tour since taking over at Intel, announced a new strategy last month under which the U.S. chipmaker will launch a foundry, or contract manufacturing, division.

On top of investing $20 billion in the United States, Gelsinger is prospecting for a location for a plant in Europe that he says would back Breton’s goal of doubling the region’s share of global chip output to 20% over the next decade.

Gelsinger, who met German Economy Minister Peter Altmaier on Thursday, was quoted as saying that Germany would be a suitable location for a potential European foundry.

“Geopolitically, if you’re in Europe, you want to be in continental Europe,” he told Politico.

“We think of Germany as a good candidate — not the only, but a good candidate — for where we might build our fabrication capabilities,” he said, also indicating interest in the Benelux countries.

On the German leg of his visit, Gelsinger also met executives from carmaker BMW and telecoms operator Deutsche Telekom, Intel said.

Sources said he also visited the headquarters of Volkswagen, although an Intel spokesman said he could not confirm that a meeting took place.

 
Guy is nuts.

This is happening and the graphics include robots. New campus is ambitious and we'll see how productive it will be. There isn't really the demand for the new fabs or the money.


Pat Glasinger, CEO of Intel Global, will visit Israel next week to announce the construction of a new building at the Haifa Matam, which together with the existing two will produce a hybrid campus - meaning he can employ workers both on and off campus as needed. The planned investment in the building is about $ 200 million. The campus that will open in 2023 is spread over an area of 70,000 square meters, of which 40,000 square meters are surface and 30,000 square meters below ground.

The new building will be built next to the company's existing buildings in Haifa and the production of the first Israeli mega-campus of its kind, for 6,000 employees in the field of hardware and software and in the development of future chips. The building will cover an area of tens of thousands of square meters and will house thousands of workers, who will have a hybrid work experience. The new model will allow flexible workers to combine work from home with work from campus in a work environment that emphasizes sharing and creativity. The workers will work in a hybrid work model that combines home and work. It will also have areas for individual work, shared and modular work spaces that will allow a combination of frontal meetings combined with video participants.

According to Intel, the campus will include thousands of square meters of sports grounds and green nature areas that will be located around the building, inside it and also on the roof overlooking the shoreline. The new campus will include a visitor center that will be open to the public, as well as an auditorium that will incorporate the needs of the community. The building will continue the trend of green and sustainable construction (LEED Platinum) alongside being a smart building.

And as mentioned, Pat Glasinger, CEO of Intel Global, will visit Israel next week as part of which he will announce the establishment of the center along with other announcements.

Karin Ibschitz Segal, CEO of Intel Israel Development Centers: “I am proud that Intel Global continues to invest and build the future of the Israel Development Center. The new campus will lead us forward to a flexible environment that allows for optimal selection and integration of work from and off campus. What fun it would be to develop the most advanced technologies in the world in such an environment! ”

Along with the announcement of the expansion of the company's development activities, Intel announces that it will recruit and recruit about 1,000 new employees in the first three quarters of the year to all of its development centers in Israel, in support of and implementation of major projects it has received from its global headquarters. Intel will recruit hardware engineers, who will form the current core of recruitment, and software and AI engineers, from the fields of electrical engineering, software and computer science, for a wide range of positions, from students to experienced engineers with advanced degrees. The main groups currently recruiting workers are the development groups for the worlds of computing, data and the cloud.

In addition, Intel will serve as a leading factor in establishing a large multi-sectoral training initiative that will work to increase the scope of skilled and relevant manpower in the fields of science and technology.

Intel is the largest employer in Israel with 14,000 employees: 7,000 development employees in all of Israel's development centers, 4,900 production employees and 2,100 Mobilai, Mobit and Habana Labs employees. Intel also employs approximately 54,000 employees and other employees in indirect employment. The company has 3 major development centers located in Haifa, Petah Tikva and Jerusalem, and an advanced chip manufacturing plant in Kiryat Gat.
 
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Instead of trying to make his company competitive he's going hat in hand to countries around the world looking for hand outs. It's absolutely shameful to see Intel turn into a company of beggers.
TSMC asked for and was promised government subsidies for their planned Arizona FAB. Samsung is asking for subsidies for their next FAB in Austin. So why single out Intel for something every company is doing?
 
TSMC asked for and was promised government subsidies for their planned Arizona FAB. Samsung is asking for subsidies for their next FAB in Austin. So why single out Intel for something every company is doing?

The scale of what Intel is asking for goes far beyond the usual tax breaks and incentives that companies usually get for large capital investments. Intel is asking for governments to more directly underwrite it's capex.
 
The scale of what Intel is asking for goes far beyond the usual tax breaks and incentives that companies usually get for large capital investments. Intel is asking for governments to more directly underwrite it's capex.

How else will Intel keep up with TSMC and Samsung in the CAPEX race? Sounds like a good plan to me. Kind of a Hail Mary type of deal though.
 
The scale of what Intel is asking for goes far beyond the usual tax breaks and incentives that companies usually get for large capital investments. Intel is asking for governments to more directly underwrite it's capex.
And so will every other US semiconductor manufacturer. TSMC actually is participating in the the same discussions with US government that Intel does, so they may get a piece of this pie too:

A bipartisan group of federal legislators in June introduced a bill that would set aside $22.8 billion in incentives to expand semiconductor manufacturing facilities in the U.S., which TSMC officials indicated they expect would include funding for their facility as well as others.

That's in addition to the "regular" incentives they already got promised.

These are unusual times and seemingly both TSMC and Intel act the same way. Intel may get a preferential treatment (compared to TSMC) in the upcoming bill by virtue of being a US company but we do not know this yet.
 
How else will Intel keep up with TSMC and Samsung in the CAPEX race? Sounds like a good plan to me. Kind of a Hail Mary type of deal though.
It is indeed a challenge for Intel. I think there are two distinct issues here. To compete in the process advancement Intel probably does not need to have the same level of CAPEX. They just need to maintain a sufficient level of R&D spending (and we are talking big money too). If they want to compete as a foundry then it's a different story. I am not sure how they could do that.
 
Instead of trying to make his company competitive he's going hat in hand to countries around the world looking for hand outs. It's absolutely shameful to see Intel turn into a company of beggers.
Don't hate the player. Hate the game. TSMC is getting some hand outs from US to build fab in AZ. Nothing wrong with it, if EU is desperate enough to hand out free money to Intel, more powers to Intel's new CEO.
 
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