Brexit takes its toll: Intel doesn’t want to build factories in the UK


Brexit

Brexit is to blame for Intel’s failure to assess the possibility of build a chip factory in the UK. This has been stated the CEO of the American company, Pat Gelsinger, at the BBC. The manager has also confirmed that before the United Kingdom left the European Union, the country would have been one of the locations that would have been taken into account for the construction of the new factories.

Intel wants to bounce back from the chip shortage that is hurting many industries, including the automotive and personal computer industries. The company, one of the world’s largest semiconductor manufacturing companies, says the crisis has shown both the United States and Europe’s overdependence on Asia for their component needs.

Intel is going to open several semiconductor manufacturing plants in Europe for regain control of the supply chain and solve your own problems. Intel presented the IDM 2 project for chip supply and manufacturing for which it will invest multimillion-dollar figures and will include the IFS division that will function as a separate business unit and will manufacture chips to order from third parties under the two dominant architectures, x86 and ARM, and also for the third and promising RISC-V.

To do this and over the next ten years, it will make an investment of close to 100,000 million dollars, expanding its facilities in the United States and building others in Europe, but in countries included in the European Union.

Brexit penalizes the United Kingdom

Gelsinger has assured that they would have looked for locations to consider the installation of a factory in the United Kingdom, but that Brexit has changed everything. Now, instead, they have «around 70 proposals from ten countries to build factories in Europe. We hope to reach an agreement on a location, as well as get the support of the European Union before the end of the year.«.

According to the CEO of Intel, «now there is a shortage of everything. And even though my peers and I are working like crazy to get to everything, it will take time before we get there.«. Of course, he assured that things will improve «incrementally»Next year, but the situation is unlikely to stabilize until 2023.

Intel’s expansion plans come amid a situation where the semiconductor market is set to double over the next seven years to become a market of around $ 800 billion. The company also hopes to secure subsidies from US and European politicians and rulers, who feel their dependence on Asia for chips could threaten their national security.

Currently, the United States produces only 12% of the world’s chips, while Samsung and TSMC make about 70% of the world’s supply. Gelsinger points out, in this regard, that «Clearly, part of the motivation for a global supply chain is that no one should be overly dependent on a third party.«.

Intel will continue to outsource a portion of its chip production, but expects, at some point, to manufacture most of its products in-house. Of course, he knows that competing will not be an easy task. Making chips in Asia is cheaper, and Intel’s rivals continue to expand. TSMC will invest 100,000 million in increasing its manufacturing capacity in the next three years and Samsung will invest 205,000 million dollars.

They trust Intel to maintain their leadership profile. Gelsinger recalls that «It is an industry in which the United States we create. Intel is the company that puts the silicon in Silicon Valley. But we realize that the rivals are good companies and well capitalized. They are investing and innovating together. That is why we have to regain the right to unquestionable leadership.e “, he assures.


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