Intel is negotiating with Germany or building a chip factory in Bavaria

According to foreign media reports, Bavaria’s economy minister said on June 18 that the state is in talks with Intel to build a European chip factory to deal with supply bottlenecks that hinder production in the auto industry.

Intel is negotiating with Germany or building a chip factory in Bavaria

(Image credit: Intel)

In recent months, the U.S. chipmaker has been seeking 8 billion euros ($9.5 billion) in public subsidies to build a semiconductor production base in Europe.

“I strongly support this approach,” said Hubert Aiwanger, Bavaria’s economy minister. “The location of a major international semiconductor manufacturer in Bavaria is an excellent opportunity.” Bavaria is home to luxury carmakers such as BMW and Audi.

Aiwanger revealed that the state has suggested an abandoned air base in Penching-Landersburg, west of Munich, as a possible location for a chip factory.

A semiconductor shortage is weighing on European automakers and could hamper Germany’s economic recovery from the coronavirus pandemic. The European Union is considering a semiconductor alliance that includes chipmakers such as STMicroelectronics, NXP, Infineon and ASML to reduce reliance on foreign chipmakers amid a global supply chain crisis.

Earlier, the United States also said that it intends to provide $52 billion in funding for semiconductor production and research, which may be used to build 7 to 10 new chip factories in the United States. The U.S. move is aimed at boosting its share of the global chip market, which in 1990 accounted for 37 percent of global semiconductor and microelectronics production, which has now fallen to 12 percent.

Source: Gasgoo

Author: Zhan Ya’e

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