The strategic and vital component for the modern world economy, such as semiconductors, will soon be produced by the EU, as the American semiconductor giant Intel is choosing a site in Europe for a new factory.
Recent problems in supply chains around the world have underscored the fundamental importance of semiconductors, which are used in a growing number of products, including cars, televisions and smartphones.
High demand and closure of semiconductor plants, especially in Asia, due to disruptions caused by the coronavirus pandemic, led to a worldwide chip shortage, forcing carmakers such as Ford, Nissan and Volkswagen to cut production.
The European Union wants to become less dependent on fragile supply chains destabilized by the pandemic and has identified semiconductors as being of strategic importance to the Union of 27 states.
Intel will select a site in Europe in early 2022 that will produce semiconductor components, ultra-thin to be measured in nanometers. Pat Gelsinger, CEO of US company will employ 1.500 people each and will cost 10 billion euros. Six more plants could be built in the future, increasing the potential investment to 80 billion euros, he added.
Germany seems to be the favorite to host Intel plants. The area around the eastern city of Dresden is already home to big names in the chip industry, such as Bosch, Global Foundries and Infineon. Dresden "seems to mark all the boxes," said Jean-Christophe Eloy, president of the research company Yole Developpment, which specializes in the semiconductor market.
Source: KYPE
