Intel has indicated they are negotiating in the EU to find a new location to establish a new foundry complex. Negotiations over some subsidies are ongoing and estimates are for some $10 billion in concessions.

CEO Pat Gelsinger has been traveling across the region and just met French President Emmanuel Macron, German Chancellor Angela Merkel, and Italian Prime Minister Mario Draghi to discuss component supply-chain problems amid the ongoing global chip shortage. It can cost 30% more in the EU compared to the US or Asia to manufacture semiconductors which is a real disadvantage. It is known that the EU is seeking to invest €30 billion in their domestic semiconductor industry.

The EU desires to have semiconductor investment suggesting a deal is likely to be done to select a 1000 acre primary facility. The facility will need more buildings for ancillary requirements. Intel indicated that the initial $20 billion could expand to $100 billion over the life of the facility. EU likely will be in full production by 2025.

Intel and TSMC are building new facilities in Arizona suggesting the global semiconductor supply chains are becoming more abundant. Arizona should be in full production by 4Q22 or 1Q23.

Intel is known to be spending at least another $7 billion in their Ireland facility with an eye to doubling production.

Already over $100 billion has been invested globally in the preceding 12-18 months. This is driven by problems in the industry as more and more products come to the market that use semiconductors.