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If U.S.government fails to provide subsidies, Intel will spend more on building facilities in Europe

If U.S.government fails to provide subsidies, Intel will spend more on building facilities in Europe

Intel CEO Patrick Gelsinger's activism last month was aimed at encouraging U.S.
lawmakers to pass a $52 billion package that would subsidize the national semiconductor industry.
The company even said that it might focus on investments in Europe if it does not get support.
It will spend 12 billion euros to expand facilities in Ireland, and a chip packaging and testing facility is set to appear in Italy, with 4.5 billion euros earmarked for the project.
Research centers will appear and expand in France and Poland.
However, in the case of European investments, Intel expects significant material support from the local authorities.Last Wednesday, as noted by CNBC, Patrick Gelsinger allowed himself to say that if U.S.
lawmakers do not form the conditions for granting subsidies to the U.S.
semiconductor industry, the company will have to focus more efforts in Europe.
From the very beginning, as the head of Intel stressed, the company was counting on the support of the authorities in the construction of a new complex in the state of Ohio.
It will either take a long time to build and reach a modest scale if the company has to finance it at its own expense, or reach a significant scale in a more modest time if the authorities provide subsidies.
In the first case, the budget could be as low as $20 billion, while in the second it could be as high as $80 billion.According to Gelsinger, Intel canceled a groundbreaking ceremony for a manufacturing complex in Ohio scheduled for this summer because it wants to make sure it gets state subsidies first.
Ohio Governor Mike DeWine has suggested that Gelsinger is using the delay in building the facilities in the U.S.
to pressure lawmakers.
On the other hand, the governor's own sources in both houses of the U.S.
legislature make it clear that a $52 billion subsidy package will be passed soon.
State officials are prepared to give Intel about $2 billion in incentives to build the manufacturing complex, of which $700 million will be used to build the engineering infrastructure.
Intel representatives explained that Ohio attracted them not only by availability of developed base for qualified personnel training, but also by access to sufficient water resources.

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