https://www.theregister.com/2023/01/20/intel_gelsinger_casts_italy_factory/
6 replies (most recent on top)
Don't need that many fabs in Europe. Besides, with the way of doing business in Italy, Intel and other companies would be better of just staying clear from that country. Much safer to expand in Germany or even France.
Anyone ever try to do something in Italy? Was involved in a computer room build out there, the labor unions and politics alone would make the UAW look like child’s play. It took months to complete simple tasks. You’d have to be insane to try to build a factory there. IMO.
@wfz+1kMsctEs How many state of the art fabs are needed? TSMC and Samsung will most certainly invest to huge scale to defend their market share at the leading edge!
Intel today is a dreamer at leading edge only running 7nm where everyone already has worked thru 5nm volume and now ramping 3nm a full two generations ahead.
The irrational promise of becoming the technology leaders is ignoring their failed track record of the last decade and somehow assuming Samsung and TSMC with more people and money and customers collaboration will fail for settle to a slower development, ludicrous assumptions an talk and an insult as well.
LOL, wasn’t there some leader who said the chip shortage would last well into 2024 and said company saw demand and revenue plummet.
All the government subsidies cam build fab shells and maybe get a Intel at the back of the line for EUV and other tools but Messiah has forgotten all that money doesn’t Magic’s create a rich ecosystem of IP or valuable technologies that customers would need to fill those fabs. So all this talk is cheap, all the government money is vapor as said factory will likely be empty. Not sure how Messiah can honestly say he believes he can build them factories and fill them, can’t wait for his honest answer. Ask Messiah and listen to his fork tongue.
Pat trying to shakedown Italy for more taxpayer euros.
Intel appears to be casting doubt on previous proposals to build a chip factory in Italy, as the company plays off European countries against each other for the privilege of hosting its production facilities.
At the World Economic Forum in Davos, Intel CEO Pat Gelsinger told Italian newspaper Corriere della Sera the chipmaker is moving forward with the gamne plan for a semiconductor fabrication plant in Germany, but its other proposition to site an advanced semiconductor packaging and assembly facility somewhere in Italy are still up in the air.
Gelsinger reportedly said that the uncertainty was partly due to the European Chips Act not yet being approved, with the legislation expected to unlock funding to boost the semiconductor industry in Europe, including subsidies for companies including Intel to build fabrication facilities.
When it comes to the packaging plant, Gelsinger said that "Italy is still in the game, but so are other candidate countries. We're trying to see where. We'll decide within the year."
The news comes just days after the Italian government declared it was still determined to secure a decision from Intel to base a chip factory in the country, while Prime Minister Giorgia Meloni said in December that she considered Intel's investment as “highly strategic” and was seeking a meeting with the company to facilitate it, according to Reuters.
It was reported in August that Intel and the Italian government were supposedly close to sealing a deal worth at least $5 billion to have the company locate its semiconductor packaging and assembly plant there.
At the time, it was said that the Italian government was prepared to fund at least 40 percent of the cost of Intel's investment in the country, which could lead to further infrastructure being established there in future.
In response to a query regarding its plans with regards to Italy, Intel told us: “We continue to progress our discussions with Italy regarding a state-of-the-art back-end manufacturing facility and remain excited about the project. This is in addition to other projects that we are considering in other parts of the world, where we have not yet finalized locations or timing.”
Just this week, Intel claimed that it was still committed to constructing the planned manufacturing mega-fab to be located near Magdeburg in eastern Germany, after a spokesperson had previously hinted that the company was delaying the project.
Intel had likewise been assured that it would receive subsidies amounting to about 40 percent of the cost of constructing the Magdeburg site, amounting to about €6.8 billion ($7.2 billion) from the German government, but the estimated construction costs had increased by December of last year, and Intel was reportedly holding out for additional subsidies before committing to the project.
Also this week, it emerged that Intel had cancelled plans for a $200 million development center that was set to be constructed at Haifa in Israel. Intel told The Register the decision had been made with the aim of achieving cost reductions, as the company struggles with financial challenges that include a fall in revenue of nearly 20 percent during 2022.
At Davos, Gelsinger told reporters that while the chip industry was currently entering a downcycle, it was important to continue investment to ensure that Intel would be well-placed to take advantage once the economic situation picks up again.
"Everybody still believes the semiconductor industry doubles this decade, so we have to keep making those long-term investments," Gelsinger said, according to Nikkei Asia. ®