Intel in talks with Bavaria over wafer fab location

June 21, 2021 // By Peter Clarke
Intel in talks with Bavaria over wafer fab location
Intel is in talks with the German state of Bavaria over the potential creation of a foundry wafer fab near Munich, according to a Reuters report.

Reuters reported German Economy Minister Hubert Aiwanger, saying that Bavaria has proposed a disused air base in Penzing-Landsberg, west of Munich as a possible location for the factory.

The southern German state of Bavaria is home to automobile manufacturers Audi and BMW, who along with Daimler and Volkswagen have seen shortages of ICs slowing production of cars and the idling of some plants. This has raised security of semiconductor supply to political consciousness in recent months.

However while the Europe Union has talked about forming a domestic semiconductor alliance including Infineon, NXP and STMicroelectronics to cut dependence on foreign chipmakers, none of these players has expressed interest in making leading-edge digital chips (see Infineon pours cold water on European 2nm project and ST will not join European advanced chip alliance ).

The European Union has been seeking to open conversations with one or more of the global leaders in semiconductors, Intel, Samsung and TSMC and received some traction from Europe (see Intel to build two wafer fabs, be foundry for Europe and Intel seeks $10 billion subsidy for 'EuroFab' ).

Speaking to CNBC Intel CEO Pat Gelsinger said he would announce the location for a European megafab for foundry chip production "before the year's out," suggesting a deal is close to being agreed.

Related links and articles:

Reuters report

News articles:

Infineon pours cold water on European 2nm project

ST will not join European advanced chip alliance

Intel seeks $10 billion subsidy for 'EuroFab'

Intel to build two wafer fabs, be foundry for Europe

Intel could make automotive chips to ease shortfall, says CEO


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