Intel spends 33 billion euros in new chip manufacturing facilities in Europe
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Jenkz88
So Intel invests billions of Euros and create many thousands of well paid proper jobs in just about every EU member country....Brexit working so well for the UK once again. Thanks Boris..
NewTRUMP Order
Hmm a smarter business model would be to buy Andorra for 6 billion and just raise their taxes.https://media2.giphy.com/media/ygzdQq98HgcLBCacep/200w.gif?cid=ecf05e47np16ge4j3mgrr69a4x8razzdbtygufhj6uv071hi&rid=200w.gif&ct=g
pattakosn
I have seen the exact same verbatim story in several web sites and not one of them mentioned the "in return" part, only that intel will be investing billions and will create thousands of jobs.
So it is very likely that the UK is not paying Intel to invest in Germany as the rest of the EU countries do...
Ghosty
Unless the minimum wage is dropped to £4 an hour, there will never be any investment in the labour market.
tunejunky
untrue.
Mineria
It is more of an investment in being independant, see that in contrast to having everything manufactured in China.
maikai
There is always a in return part, you just will never hear it. Imagine a company actually stating their true reasons behind why lol. We want to build there because of greedy and sinister reasons only, in the USA with the new admin they are making it impossible and very expensive to do business, all the talk of climate change so new building codes etc, being forced to hire people based on skin color, the list goes on and on. Get some money in peoples pockets though and you can start having political influence in the region as well. They could invest in their own backyard but now that would cost more, they would have to pay employees more, and then of course the deals theyve made with the devil (current admin) they know eventually will come a time the bill is due
tunejunky
an an industry old timer i will tell you exactly what this deal is about.
it's about Taiwan.
more so for Europe than Intel (other than the near term).
Intel is the only player with fabs, period. and ASML is the only provider of EUV lithography machines.
Intel is broadening their machining vendors beyond Applied Materials (1 mile away from Intel) who has fueled TSMC & Intel up to this point of EUV.
and thus provides Europe with a secure supply chain outside of any ideas of a Greater China. at the same time cock-blocking AMD who has achieved market superiority (in Europe consumer sales).
Ghosty
Telsa have also invested in Germany and China, so it's even worse for UK investment. The lack of semi conductors will play a large part with big scale production. Unless that's been resolved now.
tunejunky
the "return part" are the European jobs at ASML and the entire supply chain which will NOT be coming from Silicon Valley.
we are talking billions of dollars/Euros worth of contracts for everything that's not sexy including but not limited to wire bundling which is one of the most difficult jobs in all of Tech.
your suppositions are fit for the toilet.
southamptonfc
Put another way. The EU out-competed the UK. Most likely due to its much larger internal market and it's trading power when it comes to exporting things to the rest of the world.
Same thing will happen in the car industry.
tunejunky
yes England this stings.
not least because UK is the natural first port of call from the US.
but conversely, this is good for UK residents in the long run because of lower prices (that yes, Intel is not known for, but you're not paying for shipping from US or Israel), greater availability, and no longer having to wait for the American market having all the goodies first.
and on the flip-side, France or Spain also have that first port of call thing going for them too so they can be just as dejected (though France was never a possibility due to their labor history).
the best bet for Britain is honesty from Downing St. (not holding breath) and a major investment in machine tooling.
Why_Me
First post with a sock puppet account and you post this drivel.
pattakosn
Exactly. And who made the investment? Intel? Why would they do that ?
pattakosn
Intel in return got "the European jobs at ASML and ... " ?
What a rational argument! 🙂:):):):):)
tunejunky
not sure if that's irony....
that return i mention is the return for the EU (esp. Netherlands and Germany) ASML is going to get the lion's share of this investment to kit out the fabs.
Intel's return is the shorter time to market, diversified supply chain, locking in priority with the only manufacturer of EUV machine tools, not paying as much for infrastructure or land, and a hand up in blocking AMD.
Ghosty
It makes sense for Intel to produce chips in the EU(Should be the UK, but never mind). Saves on exporting and shipping I suppose. Cheaper prices? Perhaps.
southamptonfc
Selling into the European market will involve no tarrifs unlike if they were built in China, the US or the UK.
They'll make them in the EU vs the UK because the EU market is bigger than the UK. You look after your biggest markets first. That's business 101.
They/UK consumers take the hit of tariffs on the chips sold to the UK rather than the much bigger EU market taking the hit.
Ghosty
That's the downside to leaving the single market with loads of other countries in it. The UK now has other options, which the EU dosen't. Not in the short term though.
Noisiv
This investment makes Intel the key component of European Chips Act which aims for 20% of global semi share by 2030.
But it won't be enough.
Because when it comes to semi investments: Korea is looking to outspend China. China will outspend US. And only then comes EU,... Japan.
Global Semiconductor Market Share, by Major Country
https://www.semiconductors.org/wp-content/uploads/2022/01/Picture1c.png
