After Brexit, Intel Will Not Consider Building A Semiconductor Facility In The United Kingdom

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After Brexit, Intel Will Not Consider Building A Semiconductor Facility In The United Kingdom
08 Oct 2021
7 min read
TWN In-Focus

News Synopsis

Intel wants to increase production in the face of a global chip shortage that is affecting the supply of vehicles and other items. The company, which is one of the world's major semiconductor manufacturers, claims that the crisis has demonstrated that the United States and Europe are overly reliant on Asia for chip manufacturing. Microchips are used in millions of devices, from cars to washing machines, but they are in short supply this year due to increased demand and supply chain concerns.

It has resulted in shortages of popular commodities such as vehicles and laptops, as well as price increases, which Mr. Gelsinger predicted would continue into the holiday season. Mr. Gelsinger stated that the company "certainly would have been pursuing sites for consideration" in the United Kingdom, but that this had changed due to Brexit. The company also seeks to win subsidies from politicians in the United States and Europe, who believe that their reliance on Asia for chips could jeopardize national security. Mr. Gelsinger told the BBC that "it is definitely part of the incentive of a globally balanced supply chain that nobody should be unduly dependent on someone else."

Chip manufacturing is still cheaper in Asia, and Intel's competitors are expanding. Over the next three years, TSMC, the world's largest contract manufacturer of semiconductors, will invest $100 billion in capacity expansion, while Samsung will invest $205 billion.

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