Brexit already causes the first clouds in the technological field: goodbye to the Intel chip plant in the United Kingdom

Intel had announced that it was considering opening its European plant in the UK.

It was a chronicle of an announced death: the abandonment of the European Union (EU) by the United Kingdom already has its first victims in the technology sector. The US giant Intel has confirmed that it is ruling out its plans to settle on Boris Johnson's land due to Brexit.

Pat Gelsinger, CEO of Intel, acknowledged in statements to the British channel BBC that before the United Kingdom left the European Union this country would have been a site that the company would have considered building its factory in the old continent, but that after Brexit is "looking at EU countries and getting support from the EU."

During this global chip crisis, which is affecting not only manufacturers of technological products but also other sectors of significant economic weight such as the automobile industry, Intel wants to boost the production of microprocessors and therefore seeks alternatives where expand beyond the United States.

To make its foray into Europe a reality, the company announced that it will invest 95,000 million dollars in the opening and updating of semiconductor plants in our continent over the next ten years, in addition to boosting its production in the United States.

And it is that from Intel, which is one of the largest semiconductor producers in the world, believe that this crisis has shown that the US and Europe depend too much on Asia for their chip manufacturing needs.

Importantly, this vision from Intel is supported by industry data, as the US currently produces only about 12% of the world's semiconductors, while Korea's Samsung and Taiwan Semiconductor Manufacturing Company (TSMC) represent 70% of the world supply.

Gelsinger pointed out that the company does not know if they would have been able to locate in the United Kingdom if Brexit had not occurred, but what they do know is that they now have "around 70 proposals for sites throughout Europe in perhaps ten different countries." "We are hopeful of reaching an agreement [on a site], as well as support from the EU [...] before the end of this year," added the Intel CEO.

the future of the sector, Gelsinger is not very optimistic and maintains that the shortage of chips - and therefore the increase in prices - will continue until 2023 and that they will surely affect next Christmas.

The CEO of Intel, in fact, predicted for the BBC that there may be "some promissory notes under the Christmas trees around the world this year" instead of gifts. “Everything just falls short at the moment. And even if my colleagues in the industry and myself are working like crazy to catch up, it will take a while [until everything recovers], "he explained, noting that things would improve" gradually "next year, but that they are unlikely to stabilize until 2023.

Let us remember that the lack of semiconductors and the crisis around it are mainly due to an increase in demand and problems in the supply chain derived from the global health situation.

The EU, very much for the work of getting into the chip business

The EU has underlined the need to boost the bloc's technological sovereignty in the face of the vulnerabilities exposed by the health crisis and the supply restrictions that appeared when world trade was reactivated.

In this way, the president of the European Commission, Ursula von der Leyen, has defended the importance of the EU investing in its “technological sovereignty” and providing the necessary resources “following its own norms and values” to the transformation digital.

"We depend on chips manufactured in Asia," the German lamented last September at the headquarters of the European Parliament in Strasbourg (France), underlining that "it is not only a question of competitiveness but also of technological sovereignty", therefore that Brussels will propose a European Chips Law.

“We need to connect our research, design, and testing capabilities that are at the forefront of the world. We need to coordinate national and EU investments throughout the value chain ", explained the president of the European Commission, referring to the objective of" jointly creating a cutting-edge European chip ecosystem "that" guarantees security of supply. and develop new markets for pioneering European technology ”.

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