Intel targets automotive chip business opportunities and plans to invest 80 billion euros in Europe to expand production

Intel announced that it may invest 80 billion euros in Europe in the next 10 years to increase its chip production capacity in Europe, and will build a semiconductor plant in Ireland for the production of automotive chips. According to Reuters, Intel CEO Pat Gelsinger mentioned at the Munich IAA International Auto Show that the company will announce two new wafer fab locations in Europe before the end of 2021. It is speculated that Intel may set up factories in Germany and France, and Intel's R&D center in Poland is also included in this expansion of wafer production capacity.

Gelsinger pointed out that the future goal is to create a project worth 80 billion euros (94.77 billion U.S. dollars) to promote the development of the semiconductor industry, and it is expected to become the driving force for the development of the entire technology industry. As the largest manufacturer of PC and data center processor chips, Intel recently announced that it will open its wafer fabs to external users. Gelsinger told Reuters that Intel expects to provide chips to automakers within 6 to 9 months to help solve the global shortage of automotive chips. Cars have become mobile data centers, and chip manufacturers and car manufacturers need each other, so Intel's vision is to establish an innovation center for Europe.

The purpose of the Intel Foundry Services Accelerator is to help automakers learn Intel 16 technology to manufacture chips and move towards Intel 3 and Intel 18A technology. Although Intel has not yet publicly announced the manufacturers participating in the program, it is rumored that nearly 100 automakers and important supply chain companies, including BMW, Volkswagen Group, Daimler and Bosch, support the program.

Although it is not clear whether Intel can achieve its target, it is certain that automotive chips are one of its important strategies. Gelsinger believes that by 2030, the proportion of chips in the cost of automobiles will increase by 4% compared to 2019, reaching 20%.

By 2030, chips could account for 20% of the total cost of a car (Image source: Intel)