A German state minister in Bavaria confirmed that the state was in talks with Intel about building a local factory, Reuters reported today. The Minister of the Economy Hubert Aiwanger did not detail the course of the negotiations but indicated that Bavaria offered Intel at least one possible location.
Pat Gelsinger, CEO of Intel, traveled to Europe in April to discuss building a state-of-the-art semiconductor plant to support the company’s IDM 2.0 strategy including extensive manufacturing in in-house, outsourcing and contract manufacturing services under the Intel foundry. Service nickname.
Intel hopes to secure some 8 billion euros ($ 9.7 billion) in government subsidies, which may include incentives such as tax breaks and direct investment. This could be a clue that the chip giant is planning to build a fairly large factory in mainland Europe that could cost around $ 25 billion or more.
Intel’s actual plans for the fab have yet to take shape, but Bavarian officials have already proposed an abandoned airbase in Penzing-Landsberg near Munich as a potential location for the fab.
“I strongly support this,” Aiwanger said according to Reuters. “The possible establishment of a major international semiconductor manufacturer in Bavaria is an exceptional opportunity.”
Intel has been operating factories near Leixlip, Ireland since the 1980s, so the company is not new to Europe. Adding an additional location, however, would help it ensure sufficient production capacity for existing customers and future factory-less customers when Intel begins offering manufacturing services.
Intel plans to disclose formal plans for its plant in continental Europe by the end of 2021. Besides Germany, the company is also considering Belgium, the Netherlands and Luxembourg.