Intel says Brexit means it is no longer considering the UK as the site to build a major new chip factory as part of its $95bn (£70bn) Globala expansion plans.
Pat Gelsinger, chief executive of the world’s largest semiconductors manufacturer, said they were now only considering EU member states hosting a new European site.
Intel plans to invest £70bn in infrastructure over the next 10 years to boost its production by setting up new semiconductor plants. The company said the US and Europe were heavily dependent on Asia for their chips and rival manufacturers continue to expand into countries such as South Korea and Taiwan.
“I don’t know if we will have a better site than the UK,” Mr Gellinger told BBC News. “But now we have about 70 offers for sites across Europe from maybe 10 different countries. We hope to have an on-site agreement as well as support from the European Union before the end of this year.
The Intel boss said the company is hoping to get subsidies from governments in the US and European countries on the grounds that reliance on Asia for microchips could threaten their national security. “It is clearly part of the motivation for a globally balanced supply chain that no one should depend on anyone else,” Mr Gelsinger said.
The company’s plans to expand into the EU market come amid a global shortage of semiconductors, which is affecting supply chains of all kinds of goods from cars to computers, driving up the prices of many goods where microchips are important. are components.
Mr Gelsinger said the crisis could continue until Christmas and while they were “working like crazy to catch up, it is going to be some time”. He said that the situation may improve slightly next year but it will take time till 2023 for the situation to stabilize completely.
The ouster from Intel’s expansion plans isn’t the only result Britain has suffered as the country leaves the European Union. Dozens of companies in Britain had cut jobs, expanded their European operations or issued warnings over the impact of Brexit before the final deal went into effect on 31 January last year.
In January 2019, British bank Barclays transferred £166bn of its clients’ assets to Dublin, saying it could not wait to implement Brexit contingency plans. As of last year, at least 140 companies had moved to the Netherlands since the 2016 Brexit referendum, according to the Netherlands Foreign Investment Agency.
Credit: www.independent.co.uk /