Bavarian government strongly backing Intel’s application for the semiconductor plant

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Intel plans to build chip production facility in Bavaria, Germany. (Credit: Coolcaesar/Wikipedia.org)

Intel is in talks with the German state of Bavaria for establishing a large-scale chip production facility in the Landsberg area.

An announcement in this regard was made by Bavarian State Minister of Economic Affairs, Regional Development and Energy Hubert Aiwanger.

The chipmaking factory has been proposed by the company in an effort to address supply bottlenecks that have hindered production in the automotive sector, said the minister.

Aiwanger has been quoted by German regional newspaper Augsburger Allgemeine, as saying: “The current shortage of chips with serious effects on our automobile companies and other companies and sectors shows that Europe and the federal government urgently need to act in terms of industrial policy here.

“The Penzing-Landsberg location and the region as a whole would be ideally suited for the project.”

Aiwanger added that Bavaria strongly backs Intel’s application for building what could be the largest chip factory in Europe.

Recently, Intel CEO Pat Gelsinger, in an interview to Politico Europe, said that the company is seeking public subsidies for building a semiconductor plant in Europe.

Last month, the company said that it will make a multi-year investment of $3.5bn for ramping up the capacity of its chip manufacturing facility in Rio Rancho in New Mexico, US. The investment would enable the US firm to manufacture its 3D packaging technology – Foveros in addition to other advanced semiconductor packaging technologies at the Rio Rancho facility.

In March 2021, Intel had announced a $20bn investment in Arizona for building two new semiconductor fabs, as part of its significant expansion plans for manufacturing of computer chips.