The news: Intel announced it is investing $19 billion in a new chip plant in Magdeburg, Germany, as part of a more comprehensive European expansion plan in its pivot to supplying chips for EVs.
Why Europe? The leading American chip manufacturer is making inroads in Europe and has investments in France, Ireland, Italy, Poland, and Spain, where it expects to spend $90 million in funding over the next 10 years, per The New York Times.
It all leads to EVs: Intel’s EU fixation is strategic since it’s clearly creating new profit centers, like becoming a chip fab for other manufacturers and catering to an EV industry whose reliance on chips will only grow in the next decade.
Why this could succeed: Diversifying its future plants across the US, Asia, and Europe gives Intel flexibility in catering to various industries.
Establishing a European presence makes it possible to focus on producing automotive and EV chips and help cut down on importation and transportation costs, thus making Intel the preferred chip supplier in the region.
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