Intel aims to bring more production back to the U.S. and Europe, counterbalancing Asia’s manufacturing dominance.
- Intel Corp INTC looks to add facilities in France and Italy and put a critical production site in Germany in its bid to go global, Bloomberg reports.
- France will be home to a research and design center, and Italy will be the location of a test and assembly factory.
- The central wafer fabrication plant, or fab, will likely be built in Germany.
- State-of-the-art chip production plants cost over $20 billion, and their most expensive component, machinery, is usually obsolete within five years.
- The German plant could have a price tag in that range. Meanwhile, the report added that the Italian test and assembly plant would cost around $10 billion.
- Intel and government officials are still negotiating on the site, with Sicily being one area under consideration.
- Intel may build the French R&D center in either Paris or Grenoble. Such facilities typically cost only a fraction of the amount needed to make a factory.
- Even with the potential government help, Intel is budgeting up to $28 billion for new plants and equipment in 2022, up from roughly $18 billion this year.
- The report added that Intel looks to build factories that make chips for other companies, directly rivaling Taiwan Semiconductor Manufacturing Co Ltd TSM in the so-called foundry business.
- Price Action: INTC shares traded lower by 0.14% at $50.90 in the premarket session on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in