Intel to get $7.3b for Germany fab site as TSMC dismisses Europe plans
(2022/06/08)
- Reference: 1654706787
- News link: https://www.theregister.co.uk/2022/06/08/intel_germany_tsmc/
- Source link:
Intel is reportedly set to receive €6.8 billion ($7.3 billion) in subsidies for a massive chip manufacturing campus it's planning in Germany, and the x86 giant apparently won't have to worry about foundry rival TSMC setting up shop anywhere nearby for the time being.
The German subsidies for Intel's planned fab site in Magdeburg was disclosed last week by Martin Kröber, the city's representative in the Bundestag, according to [1]local media . The federal government has already allocated €2.7 billion in its 2022 budget
Germany's Deutsche Presse-Agentur said the government is discussing the possibility of subsidies for other projects in the microelectronics industry.
[3]
The news is likely to be of some relief to Intel CEO Pat Gelsinger, [4]who has been begging the US Congress to pass chip subsidies in America for its planned fabs in [5]Ohio and [6]Arizona . The House of Representatives and Senate have been working out their differences in the $52 billion CHIPS for America Act [7]since mid-May .
[8]
[9]
Germany's subsidies will cover nearly 40 percent of the initial €17 billion ($19 billion) that Intel plans to spend on the Magdeburg mega-site. [10]Announced in March , the project is part of a larger €33 billion ($36 billion) investment in Europe planned by the American chipmaker that will include an R&D and design hub in France as well as manufacturing, foundry and chip packaging service operations in Italy, Poland and Spain.
In the first phase of the project, Intel's massive site in Magdeburg will consist of two neighboring fabs that will occupy the space of two World Cup-class football fields. The chipmaker is projecting that the campus will create 3,000 permanent high-tech jobs for the company as well as tens of thousands of additional jobs at suppliers and partners in the area.
[11]
Construction of the new fabs in Magdeburg are set to begin in the first half of 2023, and the plants are expected to begin manufacturing chips using an advanced node in 2027.
TSMC says no to fabs in Europe — for now
While Intel has been gung ho about building fabs in Europe, the same can't be said for Taiwan's TSMC, the world's largest contract chip manufacturer that makes silicon for companies like Apple, AMD and Nvidia.
[12]According to Reuters , TSMC Chairman Mark Liu said on Wednesday that the foundry giant has no "concrete plans" for fabs in the continent as it has "relatively fewer customers" there.
[13]India: It would be fab if Intel and TSMC built plants here
[14]Intel boss presses Congress for manufacturing subsidies
[15]European nations battle to bag some of Intel's billions
[16]TSMC's post-pandemic future in a world short of chips? New factories, more revenue
A year ago, TSMC reportedly said it was in the early stages of considering an expansion into Germany, but Liu's statement shows that the chipmaker apparently hasn't made much progress with such plans.
The statement is likely to disappoint European Union officials who have been working with Taiwan's government in a bid to lure the island nation's chipmakers to set up shop in Europe.
The effort is part of the EU's proposed [17]European Chips Act , which was revealed in February to boost the bloc's competitiveness and resilience in semiconductors while also supporting digital transformation and environmental sustainability goals.
Just last week, Taiwan's Ministry of Economic Affairs announced a [18]"major breakthrough" in talks with the EU about cooperation in the semiconductor industry, which could pave the way for Taiwanese chipmakers to build new fabs in the continent.
[19]
But for now, it seems that the EU shouldn't count on TSMC and should instead look at [20]Taiwan's other foundries such as UMC and PSMC, which have less advanced manufacturing nodes. ®
Get our [21]Tech Resources
[1] https://www.freiepresse.de/nachrichten/wirtschaft/das-zahlt-der-bund-fuer-die-ansiedlung-von-intel-in-magdeburg-artikel12220313
[2] https://www.bundesfinanzministerium.de/Content/DE/Downloads/Oeffentliche-Finanzen/Bundeshaushalt/kabinettvorlage-zweiter-regierungsentwurf-2022.pdf?__blob=publicationFile&v=7
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YqEcATGcU65qlTRmV7wzcgAAAMU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.theregister.com/2022/03/24/intel_chips_subsidy/
[5] https://www.theregister.com/2022/01/21/intel_us20bn_ohio/
[6] https://www.theregister.com/2021/03/24/intel_gelsinger_strategy/
[7] https://www.semiconductors.org/sia-welcomes-kickoff-meeting-of-conference-committee-on-competition-legislation/
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YqEcATGcU65qlTRmV7wzcgAAAMU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YqEcATGcU65qlTRmV7wzcgAAAMU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[10] https://www.theregister.com/2022/03/15/intel_germany_europe_investment/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YqEcATGcU65qlTRmV7wzcgAAAMU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.reuters.com/technology/taiwans-tsmc-says-no-concrete-plans-build-europe-factories-now-2022-06-08/
[13] https://www.theregister.com/2022/04/27/india_it_would_be_fab/
[14] https://www.theregister.com/2022/03/24/intel_chips_subsidy/
[15] https://www.theregister.com/2022/03/02/european_intel_funding/
[16] https://www.theregister.com/2021/10/14/tsmcs_postpandemic_future/
[17] https://www.theregister.com/2022/02/08/european_chips_act/
[18] https://www.theregister.com/2022/06/02/taiwan_claims_breakthrough_in_eu/
[19] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YqEcATGcU65qlTRmV7wzcgAAAMU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[20] https://www.theregister.com/2022/03/16/wafer_prices_semiconductor/
[21] https://whitepapers.theregister.com/
The German subsidies for Intel's planned fab site in Magdeburg was disclosed last week by Martin Kröber, the city's representative in the Bundestag, according to [1]local media . The federal government has already allocated €2.7 billion in its 2022 budget
[2]PDF
for the project, according to Kröber.Germany's Deutsche Presse-Agentur said the government is discussing the possibility of subsidies for other projects in the microelectronics industry.
[3]
The news is likely to be of some relief to Intel CEO Pat Gelsinger, [4]who has been begging the US Congress to pass chip subsidies in America for its planned fabs in [5]Ohio and [6]Arizona . The House of Representatives and Senate have been working out their differences in the $52 billion CHIPS for America Act [7]since mid-May .
[8]
[9]
Germany's subsidies will cover nearly 40 percent of the initial €17 billion ($19 billion) that Intel plans to spend on the Magdeburg mega-site. [10]Announced in March , the project is part of a larger €33 billion ($36 billion) investment in Europe planned by the American chipmaker that will include an R&D and design hub in France as well as manufacturing, foundry and chip packaging service operations in Italy, Poland and Spain.
In the first phase of the project, Intel's massive site in Magdeburg will consist of two neighboring fabs that will occupy the space of two World Cup-class football fields. The chipmaker is projecting that the campus will create 3,000 permanent high-tech jobs for the company as well as tens of thousands of additional jobs at suppliers and partners in the area.
[11]
Construction of the new fabs in Magdeburg are set to begin in the first half of 2023, and the plants are expected to begin manufacturing chips using an advanced node in 2027.
TSMC says no to fabs in Europe — for now
While Intel has been gung ho about building fabs in Europe, the same can't be said for Taiwan's TSMC, the world's largest contract chip manufacturer that makes silicon for companies like Apple, AMD and Nvidia.
[12]According to Reuters , TSMC Chairman Mark Liu said on Wednesday that the foundry giant has no "concrete plans" for fabs in the continent as it has "relatively fewer customers" there.
[13]India: It would be fab if Intel and TSMC built plants here
[14]Intel boss presses Congress for manufacturing subsidies
[15]European nations battle to bag some of Intel's billions
[16]TSMC's post-pandemic future in a world short of chips? New factories, more revenue
A year ago, TSMC reportedly said it was in the early stages of considering an expansion into Germany, but Liu's statement shows that the chipmaker apparently hasn't made much progress with such plans.
The statement is likely to disappoint European Union officials who have been working with Taiwan's government in a bid to lure the island nation's chipmakers to set up shop in Europe.
The effort is part of the EU's proposed [17]European Chips Act , which was revealed in February to boost the bloc's competitiveness and resilience in semiconductors while also supporting digital transformation and environmental sustainability goals.
Just last week, Taiwan's Ministry of Economic Affairs announced a [18]"major breakthrough" in talks with the EU about cooperation in the semiconductor industry, which could pave the way for Taiwanese chipmakers to build new fabs in the continent.
[19]
But for now, it seems that the EU shouldn't count on TSMC and should instead look at [20]Taiwan's other foundries such as UMC and PSMC, which have less advanced manufacturing nodes. ®
Get our [21]Tech Resources
[1] https://www.freiepresse.de/nachrichten/wirtschaft/das-zahlt-der-bund-fuer-die-ansiedlung-von-intel-in-magdeburg-artikel12220313
[2] https://www.bundesfinanzministerium.de/Content/DE/Downloads/Oeffentliche-Finanzen/Bundeshaushalt/kabinettvorlage-zweiter-regierungsentwurf-2022.pdf?__blob=publicationFile&v=7
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YqEcATGcU65qlTRmV7wzcgAAAMU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.theregister.com/2022/03/24/intel_chips_subsidy/
[5] https://www.theregister.com/2022/01/21/intel_us20bn_ohio/
[6] https://www.theregister.com/2021/03/24/intel_gelsinger_strategy/
[7] https://www.semiconductors.org/sia-welcomes-kickoff-meeting-of-conference-committee-on-competition-legislation/
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YqEcATGcU65qlTRmV7wzcgAAAMU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YqEcATGcU65qlTRmV7wzcgAAAMU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[10] https://www.theregister.com/2022/03/15/intel_germany_europe_investment/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YqEcATGcU65qlTRmV7wzcgAAAMU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.reuters.com/technology/taiwans-tsmc-says-no-concrete-plans-build-europe-factories-now-2022-06-08/
[13] https://www.theregister.com/2022/04/27/india_it_would_be_fab/
[14] https://www.theregister.com/2022/03/24/intel_chips_subsidy/
[15] https://www.theregister.com/2022/03/02/european_intel_funding/
[16] https://www.theregister.com/2021/10/14/tsmcs_postpandemic_future/
[17] https://www.theregister.com/2022/02/08/european_chips_act/
[18] https://www.theregister.com/2022/06/02/taiwan_claims_breakthrough_in_eu/
[19] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YqEcATGcU65qlTRmV7wzcgAAAMU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[20] https://www.theregister.com/2022/03/16/wafer_prices_semiconductor/
[21] https://whitepapers.theregister.com/
Long range vs smash n grab
Platinum blond(e)
TSMC's comments suggest they have the long view firmly in their sights. No supply chains in Europe which meet their needs *, and no big consumers (e.g., contract manufacturing houses) of the parts they ship. So even if they set up shop it would take many billions of euros more to keep from shipping the products halfway around the word to make finished goods. And then ship them back to end consumers. So with higher European labor costs to make things, and shipping stuff to and fro, this model is unsustainable once the subsidies run out.
Intel OTOH is selling the Field of Dreams story, both to Europe and the USA. And quite likely to themselves.
*: with the exception of ASML of course.
Re: Long range vs smash n grab
Platinum blond(e)
Thumbs down without reply/rebuttal dont mean much to me.
Re: Long range vs smash n grab
elsergiovolador
I think it's more about national security of Taiwan. If they build fabs capable of what they do on the island in Europe, then the West will have fewer reasons to defend them had China decided to launch a full scale attack.
Re: Long range vs smash n grab
Platinum blond(e)
Fair point! May we explore this a moment more?
If TSMC chose to build fabs in Europe, the Community would be even more interested in Taiwan's security at least until those fabs and required supply chains are producing products there. This could be 3 to 5 years, more if the supply chains depend on TSMC's expertise. So they could have increased protection (if you can call it that) and some subsidies to help.
If Taiwan were seriously concerned about an imminent threat, it seems to me they would work a deal. They aren't making the short term play.
This could be an early bluff while all await the river card. But I still think they're playing a longer game.
40nm?
That's great if they will be making chips. But a chip is as good as a coaster or a back scratcher (if it has pins) if you don't have all supporting components.
And there is a great shortage of microcontrollers that don't need a fancy 5nm fab. They are made using 40nm and older processes.
Many smaller businesses had to close because they just can't get parts for their products and the bigger corporations even resort to buying home appliances to strip them off components.