Intel Will Open a New Semiconductor Plant in Germany, 88 billion Dollars investment drive across Europe

Berlin – And in its latest plan by a semiconductor company, Intel has picked Germany as a site for a huge new chip-making complex. A company has given the first details of an $88 billion investment drive that is spread across Europe.

It is trying to cut its reliance on imports and ease the supply crunch for manufacturers. Intel is going to address to high chip demand. The industry is trying to catch up with a boom in demand for chips which are used in everything from smartphones to cards, so there will be no quick fix as new German plants won’t come until 2027.

US chipmaker Intel is spreading its investments around half a dozen countries including boosting its existing factory in Ireland. It is setting up a design and research facility in France and the packaging and assembly site in Italy.

The initial spending will be totaling $36 billion. It includes 17 billion dollars in Germany, where the auto industry is likely to be a prime customer for cutting-edge chips that could use technology as small as two nanometers.

German automaker Volkswagen highlighted earlier the pain caused by Chip shortages. It said it sold 2 million fewer cars than planned last year due to chip shortage. Intel’s announcement comes after the European Commission last month sets out plans to encourage chip manufacturing in the union with the proposed new legislation to ease state aid rules for CHIP factories and enable $17 billion in additional public and private investment.

Chipmakers are looking to build more factories to make advanced and smaller chips for using premium smartphones like Apple’s latest phones that use chips with five-nanometer technology. A nanometer is just several atoms wide is very very small.