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Intel plans to invest and build factories in Europe, Samsung Electronics may be affected

Intel CEO Pat Gelsinger recently met with French President Macron and German Chancellor Merkel to discuss investment and construction of factories in Europe. Industry insiders pointed out that Samsung Electronics may be affected by this action.

According to a report from BusinessKorea, some analysts pointed out that Intel's investment in Europe for foundry business will affect Samsung Electronics' market share and price negotiation capabilities. Although Samsung Electronics and TSMC have an absolute advantage in the current global foundry market, as the number of competitors increases, the industry may tilt to the buyer's market.

European media reported that Intel is looking for locations to build 6-8 factories in the next 10-15 years. Intel's investment is expected to reach 10-15 billion US dollars. Each chip factory is expected to create 1,500 jobs.

It is reported that France and Germany are trying to introduce Intel's investment projects. European governments are considering granting 20% ​​to 30% subsidies for Intel’s investment.

In addition, Intel announced in March this year that it would invest 20 billion U.S. dollars to build two foundries in Arizona, USA. The new plants are expected to start operations in 2024. Pat Gelsinger said at the time that it is important to ensure manufacturing capacity in the United States and Europe, because most chip production capacity is currently concentrated in Asia.

However, Korean media pointed out that even if Intel decides to build a factory, it will take more than three years. Therefore, South Korean companies such as Samsung Electronics and SK Hynix still have time to respond to this action. An industry insider said that as the semiconductor manufacturing process continues to advance, it is not easy for Intel to master advanced manufacturing technology.