In this video, I will be talking about Intel (INTC 0.64%) and the recent announcements it has made about its European expansion. You can find the video below, but here are some of the highlights.
- In January, Intel announced it will invest more than $20 billion to build two new factories in Ohio. It also pledged an additional $100 million toward partnerships with educational institutions.
- Last week it announced something even bigger than one or two fabs. Intel plans to invest up to €80 billion over the next decade in Europe.
- Intel is investing in the whole chip ecosystem: R&D, design, packaging, manufacturing and foundry services. The initial investment, phase one, represents €17 billion in Germany and to create a new R&D and design hub in France and €12 billion in Ireland. Once this phase is complete, Intel's total investment in Ireland will be more than €30 billion.
- The world needs semiconductors. But the majority are made in Taiwan or South Korea, 80% to be exact. This is one reason we are seeing supply chain problems.
- The EU Chips Act will bring in €43 billion of public investment.
- The plan is to make Europe the leader in chip production and for Europe to produce 20% of the world's microchips by 2030, about twice as much as today.
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*Stock prices used were the closing prices of March 18, 2022. The video was published on March 20, 2022.
