Intel has been remotivated after Pat Gelsinger took over as the CEO and is focusing on its foundry business to make chips for itself and other tech companies.
The need for foundry business is growing in the last couple of years, but the supply isn’t up to the mark to keep up with the growing demand, as we are evident with the ongoing global chip crisis. So, Intel is looking to spend more to make its foundry business stronger across the world.
The chip crisis hasn’t spared any industry, from technologically advanced EUV chips to semiconductors used in cars. In the meantime, we have a new report from Reuters that Germany’s southern state of Bavaria talks with Intel to build a European chip factory.
Interestingly, the local economy minister said this to counter supply bottlenecks that have hampered production in the automotive sector on Friday. Intel has already sought 8 billion euros ($9.5 billion) in public subsidies to build a semiconductor manufacturing site in Europe.
“I strongly support this,” said Economy Minister Hubert Aiwanger, whose state is home to luxury carmaker BMW. “The possible location of a large international semiconductor manufacturer in Bavaria is an outstanding opportunity.”
The report says how Germany and its automotive industry is affected by the ongoing shortage of semiconductors and is even threatening to actually de-rail Germany’s economic recovery from the coronavirus pandemic.