Can Intel spend its way back to chipmaking relevance? That is the question investors should be asking as the US semiconductor manufacturer unveils plans to invest €33bn in chip production and research across Europe. The news comes as the company looks to spend more than $40bn to build and expand chipmaking facilities in the US. In Europe, Intel says it could end up investing as much as €80bn on the continent over the next decade.
Intel boss Pat Gelsinger has picked a good time to embark on a building spree. Semiconductors, which run everything from smartphones to medical devices to F-35 fighter jets, have become the new battleground for ferocious geopolitical rivalry. The global chip shortage has only heightened this sense of anxiety. Governments in both the US and Europe are pouring tens of billions of dollars of subsidies into the sector to lessen their dependence on Asian chipmakers.
Even with the help of taxpayer largesse, it is not clear whether Intel’s spending binge will be enough to return the company to its former glory. It has fallen behind its Asian rivals, after decades of global leadership,