Intel to initially invest €33B in EU

By Ovunc Kutlu

ANKARA (AA) - Intel announced Tuesday it will make an initial investment of more than €33 billion ($36.2 billion) to semiconductor manufacturing, research and development in the EU.

The initial plan includes €17 billion ($18.7 billion) for a semiconductor factory in Germany, to create a new design hub in France and manufacturing services in Ireland, Italy, Poland and Spain.

The plan aims to invest as much as €80 billion ($87.9 billion) in the EU through the next decade in the entire semiconductor value chain, the US chipmaker said in a statement.

"With this landmark investment, Intel plans to bring its most advanced technology to Europe, creating a next-generation European chip ecosystem and addressing the need for a more balanced and resilient supply chain," it added.

Since the beginning of the coronavirus pandemic, the global economy is facing a semiconductor shortage.

The chip crisis affects 169 industries in one way or another, according to US multinational investment bank and financial services company Goldman Sachs.

Global semiconductor sales reached an all-time high in 2021 as the industry increased production amid shortages, according to the Semiconductor Industry Association (SIA).

Industry sales totaled $555.9 billion in 2021 around the world -- an increase of 26.2% compared to $440.4 billion in 2020.