New chipmaking facilities in Europe could cost Intel up to $95 billion
More chips.
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What you need to know
Global semiconductor shortages and strained chip supplies have left a bevy of industries strapped for goods. Without the chips necessary to make everything from certain automobile parts to thebest Windows laptops, companies across the world are waiting for chipmakers to step up and produce more product than ever before. That same demand has led torecord-breaking revenue for foundries.
Said record-breaking revenue is largely possible thanks to expansion and growth, concepts Intel is deeply familiar with. Afterpitching $20 billionfor domestic wafer fabrication facilities (fabs), it seems the company is ready to spend even more money overseas. It announced plans to build two new facilities in Europe and has left the door open for expansions on those plans, which could result in a final bill of €80 billion (viaThe Wall Street Journal). That translates to roughly $95 billion in USD.
Intel isn’t alone in the rush to produce more chips. Fellow companies such as TSMC andSamsungcontinue to push for stronger outputs as well. In Intel’s case, upping its game has numerous benefits, includingsubsidies from the U.S. governmentas the country tries to bolster domestic semiconductor production efforts. And overseas, Intel reaps the rewards of entrenching itself in a diversity of economies.
The U.S. and countries in the EU aren’t the only ones keen on boosting their technological capabilities. In itschipmaking war with the U.S., China has been building up its own stable of companies and businesses to parallel foreign counterparts. For example: While Intel develops facilities in the U.S. and Europe, SMIC will be buildingChina’s largest fab yet.
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Robert Carnevale is the News Editor for Windows Central. He’s a big fan of Kinect (it lives on in his heart), Sonic the Hedgehog, and the legendary intersection of those two titans, Sonic Free Riders. He is the author ofCold War 2395. Have a useful tip? Send it to robert.carnevale@futurenet.com.
