Intel Will Invest US$95 Billion in European Chip-Making

A report by The Wall Street Journal has revealed that Intel Corp is ramping up investment in efforts to expand and reorganize its global semiconductor supply chains.

Renowned as a global leader in the tech space, Intel already has a fabrication site in Ireland, and now plans to expend US$95 billion on the construction of factories at an undisclosed location in Europe. The firm will also partner with auto manufacturers among its customers. 

This move is in response to the global race to develop manufacturing capacity. This race is fueled by the desire of various tech giants to forestall a future reoccurrence of the recent global shortage in chip supply. 

The factories will work to match the unusually high demand for semiconductors as computers, automobiles and electronics become increasingly dependent on chips. 

The expansion in Europe is part of Intel’s longer-term strategy as it looks to position itself as a leading contract chipmaker. This plan also includes the development of a plant in Arizona. 

This plan has not gone unchallenged as manufacturers in Asia have also begun pursuing their aggressive expansion strategies, which includes tens of billions of dollars over the next three years.