The big picture: The global semiconductor shortage and the want to create a stronger supply chain are pushing semiconductor giants to invest pregnant amounts of coin in expanding to North America and Europe. Intel is no exception and is also motivated by an ambition to retake the leadership position in process technology.

On Tuesday, Intel CEO Pat Gelsinger delivered his get-go keynote since stepping into part, closing the starting time day at the IAA Mobility issue in Munich, Germany. During his presentation, he revealed the visitor has an aggressive programme to invest up to €80 billion ($94.7 billion) in building new chip plants in Europe, among a global race to expand manufacturing capacity and reduce the industry's reliance on Asia for semiconductors.

The fund volition exist committed towards 2 fleck fabs at a new site in Europe, and the investment will be spread over several years. The location of the site has not been decided nevertheless, but Intel plans to somewhen populate information technology with no less than eight manufacturing facilities.

To that terminate, Gelsinger has been engaging in discussions with officials and major customers in Germany, France, Belgium, Poland, and kingdom of the netherlands, and is expected to denote the location of the new manufacturing site past the cease of the year. At the same time, Intel wants to outset making chips for automakers using an existing plant in the company's Leixlip campus in County Kildare, Republic of ireland.

There's a good reason for that, equally Intel expects semiconductors to make up 20 per centum of the bill of materials for new cars past the end of the decade, thanks to increased demand for premium and electric cars with avant-garde commuter assistance technology.

Similar rival TSMC, who is too looking to create a European arm, Intel Foundry Services volition be looking for subsidies that politicians are offering from the EU'southward Recovery and Resilience Fund, which amount to $175 billion over the adjacent decade. Gelsinger noted during his presentation that "y'all demand us and we demand you...The aim is to create a center of innovation in Europe."