Intel is Lobbying... Requesting Subsidies for Semiconductor Factory Construction

Intel Executives Seek US and EU Support to Balance Asia-Leaning Semiconductor Field
Taiwan's TSMC Also Lobbying US Commerce Department for Subsidies

[Asia Economy International Department Reporter] According to the Wall Street Journal (WSJ) on the 14th (local time), American semiconductor company Intel has launched a lobbying campaign targeting governments around the world, including the United States and Europe, to secure subsidies for semiconductor factory construction.

WSJ, citing sources, reported that Intel executives, including CEO Pat Gelsinger, recently held a 'rooftop banquet' near the White House for Biden administration officials to promote semiconductor investment plans. The newspaper also added that Gelsinger and Intel executives are currently conducting a 'global tour' meeting with leaders concerned about the semiconductor shortage issue.

[Image source=Reuters Yonhap News]

In fact, right after the European Union (EU) announced plans in March to spend $150 billion (175 trillion KRW) on next-generation digital industries, CEO Gelsinger visited Germany and Belgium to brief Thierry Breton, EU Commissioner for Internal Market, on a proposal to build a modern manufacturing facility costing 17 billion euros (23 trillion KRW). In June, he delivered a similar message to political leaders in France, the Netherlands, and Italy. In a French broadcast interview, he also revealed that Intel could expand production capacity in Europe by investing a total of $100 billion (117 trillion KRW) over the next decade.

WSJ reported that CEO Gelsinger conveyed to various governments the message that "Intel plans to build more semiconductor factories and can help address the problem of semiconductor manufacturing being excessively concentrated in Asia." The core of Gelsinger’s message is a request for subsidies worth billions of dollars to level the playing field tilted toward Asia.

Last year, Intel lost its position as "the most valuable semiconductor company in the United States" to Nvidia. In the second quarter of this year, it also lost the status of the world's largest semiconductor manufacturer (by revenue) to Samsung Electronics.

For Intel to reclaim its top position, it needs to establish factories in the United States and Europe, and it appears to hope to receive subsidies from these governments. Specifically, it is reported that Intel expects the EU to cover the cost difference between building factories in Europe and Asia. Intel estimates that building factories in Europe is up to 40% more expensive than in Asia, where subsidies are more abundant.

Not only Intel but also major semiconductor companies in the United States and Asia are showing similar moves. The world's largest foundry company, Taiwan's TSMC, has lobbied the U.S. Department of Commerce for subsidies, and Samsung Electronics and TSMC have held preliminary discussions for factory construction in Europe, WSJ reported.

This content was produced with the assistance of AI translation services.