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(Reuters) – Intel needs 8 billion euros ($9. 7 billion) in government subsidies for the structure of a semiconductor plant in Europe, its CEO said Friday, as the region seeks to rely on imports amid a shortage of sources.
This is the first time Pat Gelsinger has published a figure on how much state aid he would like, while Intel pursues a multimillion-dollar crusade to take on its Asian rivals in contract manufacturing.
“What we are asking the governments of the United States and Europe is that we do it here in relation to Asia,” Gelsinger told Politico Europe in an interview.
Politico quoted Gelsinger by applying for some 8 billion euros in grants. The company later distanced the report, saying it had not given an exact figure, but made it clear that EU leaders had to invest to make sure the semiconductor industry was colorful.
Gelsinger, on his first European tour since taking office, met with European Commissioner Thierry Breton in Brussels on Friday following the publication of a plan for Intel to invest $20 billion in chip production in the United States.
In the most sensible of that, Gelsinger is looking for a location for a plant in Europe that he believes would be Breton’s purpose of doubling the region’s overall chip production rate to 20% over the next decade.
Breton spoke the previous Friday with Taiwan Semiconductor Manufacturing Co (TSMC), the global chip manufacturer in front of Samsung and Intel in Korea.
In separate tweets, Breton described his meeting with Intel’s Gelsinger as a “exhaustive discussion,” while a video call with Maria Marced, president of TSMC Europe, had been a “good exchange. “
“To meet the existing and long-term demand of the semiconductor industry, Europe will especially develop its production capacity, either through partnerships decided to ensure security of supply,” Breton said.
TSMC stated that discussions with Breton demonstrated its commitment to the region. “Our willingness to help our consumers in the most complete way imaginable means that we are always willing to identify open communications with governments and regulators, wherever they and we are. “corporate said.
The Commission stated that Breton would hold talks on May 4 with the CEOs of two Dutch semiconductor companies: ASML, the leading manufacturer of semiconductor lithographic tools, and with chip manufacturer NXP.
The recent disruption of semiconductor supply chains has increased the urgency of efforts to reduce import dependence, however, analysts warn that Europe’s d’either generation base means it is not offering a viable market for a plant or “fab. “
Industry and diplomatic resources say that among the top 3 chip manufacturers, Intel has so far expressed a concrete interest in Breton’s purpose of generating the most complex chips in Europe.
Breton’s preference to attract a giant foreign chip manufacturer has baffled local players, and he is also discussing the creation of a European semiconductor alliance that would unite his interests.
Germany’s Infineon said Friday that it welcomed Breton’s initiative to bring chip production to life in Europe.
“With naturally limited monetary resources, it’s about talking about maximum urgent desires and the highest moderate means of investment,” Infineon said.
Gelsinger, who met with Economy Minister Peter Altmaier and Bavarian Governor Markus Soeder during the German component of his European tour, said Germany would be a suitable place for a imaginable European foundry.
“Geopolitically, if you’re in Europe, you need to be in continental Europe,” he told Politico, in repeated statements in a momently interview with the German company Handelsblatt.
“We believe that Germany is an intelligent candidate, not the only one, but a smart candidate, for whom we can strengthen our production capabilities,” he said, also indicating interest in the Benelux countries.
In Germany, Gelsinger also met with executives from bmw automaker and telecom operator Deutsche Telekom, Intel said. Sources said he had also visited Volkswagen’s headquarters, but none of the aspects showed it.
Gelsinger will travel next week to Israel, where Intel is expected to announce a $200 million investment in a new chip progression campus and hire 1,000 employees.