Intel to Spend $80 Billion on European Chip Plants

Posted on September 7, 2021 by Paul Thurrott in Hardware, Mobile with 17 Comments

In Munich, Germany for his first in-person keynote since taking over as Intel CEO, Pat Gelsinger said that his firm has big plans for Europe. It will invest up to $80 billion on two new chip-making facilities on the continent as part of its multi-year strategy of ending the world’s silicon manufacturing reliance on China and other East Asia locations.

“This new era of sustained demand for semiconductors needs bold, big thinking,” he said. “As CEO of Intel, I have the great privilege to be in a position to marshal the energies of 116,000 employees and a massive chip-design and manufacturing ecosystem, to meet the demand.”

Gelsinger intends for Intel to lead the push into ever more efficient chipset designs over the next decade, and he’s already announced dramatic expansions of Intel’s chipmaking capabilities in the United States. For Europe, Intel Foundry Services is already engaged in discussions with several major customers there, including leading automotive players that are currently feeling the pinch when it comes to component supply. He also said that Intel will commit foundry capacity at its Ireland-based fab specifically for advanced automotive chip manufacturing.

As for Intel, all of this work is part of his job of “turning around an icon,” he said.

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Comments (17)

17 responses to “Intel to Spend $80 Billion on European Chip Plants”

  1. jchampeau

    The proof is in the pudding, as they say. And this particular batch of pudding won't be ready for quite some time. Still, it's hard not to be excited about this!

    • lvthunder

      I think it'll happen because I think these companies see what's going on with China.

      • bluvg

        Yes, the moves in China even over the past couple weeks are very disconcerting. With a govt that capriciously changes entire industries virtually overnight without recourse and has long mandated technology transfer, it's a messy and unpredictable business situation for foreign companies.

        • lvthunder

          What have they done in the last couple of weeks? I've been too busy watching the catastrophe in Afghanistan.

  2. whistlerpro

    What's the bet the UK misses out on this investment?

  3. nbplopes

    Don’t think this solves the underlying problem. Which is some companies refusing to repair their products right out of the gate. I mean, repair, not replace.

    Battery replacement is not a repair.

  4. bluvg

    Go go Gelsinger! It seems that the news is continually better and better with him at the helm.

  5. blue77star

    Nice. This is very good news to get out of China and Taiwan and have fabs in Arizona (USA) and Europe. The way used to be and the way should be. Some good quality stuff will come out of this. I wish Intel starts making motherboards for their CPUs. That would be awesome!

    • bluvg

      Ugh, let others do the motherboards unless Intel really commits to them. Intel boards of late are just terrible to maintain. Their BIOS updates are for those that love russian roulette but wish it was much more complicated.

  6. miamimauler

    Ok, this is obviously a good thing. My only question is why this is article worthy. Tech companies are always opening new plants. How does this announcement deserve special focus?

    • miamimauler


      Damn, just reread my comment and it does come off as somewhat salty. This is where we need a 'delete' button.

    • wright_is

      Because those plants cost a lot of money, and they are being opened up outside of China and Asia. Along with the investment in US facilities, this is a huge step forward.

      • MarkPow

        And not in "Global Britain" by the sounds of it....

        • wright_is

          I think somebody probably sent Pat a link to Little Britain instead of Global Britain... :-D

          • MarkPow

            Haha You can imagine the conversation:

            Pat: We would like to make an investment in the UK.

            Government: Piffle paffle wiffle waffle

            Pat: Alrighty then

    • lvthunder

      Anytime a company spends $80 billion it's newsworthy.

  7. madthinus

    Intel expansion into custom Fab business is good news. Currently they only make their own chips, but the quantities is small compared to the global all chip needs. Having more scale and more types of products being manufactured leads to economy of scale and also innovation. That is Pat's gamble.