Europe is becoming the new battleground for semiconductors
Semiconductor World SemiW news, Last February, European Commission President Ursula von der Leyen explained a bill to expand European semiconductor production at the EU headquarters in Brussels, Belgium.
After East Asia and the USA, Europe is becoming the new battleground for semiconductors. Since Europe announced its intention to use its top domestic semiconductor equipment and automotive semiconductor companies to exert influence in the global supply chain, leading global semiconductor companies, including TSMC and Intel, have confirmed significant investments in the region. The race for dominance in the semiconductor industry has become more complex as even the European Union (EU) has set its sights on this area.
A key partner in Europe's semiconductor renaissance is Intel, which announced on June 18 (local time) that it will invest US$25 billion (approximately 32 trillion won) in a new semiconductor plant in Israel, the largest foreign investment in the country's history. Although Israel is located in the Middle East, it is effectively categorised as part of the European semiconductor supply chain. Intel had previously announced an investment of 80 billion euros (112 trillion won or US$87 billion) to build state-of-the-art semiconductor factories and research facilities in Europe. Intel's Israel plant is expected to begin operations in 2027.
Intel already operates large semiconductor plants in Ireland and Germany. In addition, there are plans to build semiconductor production and test facilities in Poland and advanced semiconductor packaging and assembly plants in Italy. There are also plans to establish R&D centres in France and Spain.
Once known as the "king of semiconductors" because it dominated the PC semiconductor market, Intel has struggled since the 2000s to keep pace with new paradigms such as foundries (semiconductor manufacturing services), memory semiconductors and graphics processing units (GPUs). In the first quarter of this year, Intel reported the largest quarterly loss in its history - US$2.76 billion (approximately KRW3.5 trillion) - while increasing the scale of its investments amidst sluggish sales results.
Europe is home to the world's leading semiconductor equipment companies, such as ASML in the Netherlands and IMEC in Belgium, as well as cutting-edge research institutes. The fast-growing power semiconductor and automotive semiconductor markets are led by European companies such as NXP in the Netherlands, Infineon in Germany and STMicroelectronics in Switzerland. However, industry insiders point out that these companies are limited to certain areas, lack advanced process technology and have no choice but to entrust production to Samsung Electronics or TSMC, making them "half-baked" companies.
The EU's determination to build advanced semiconductor production facilities is the "final piece of the puzzle" for its domestic semiconductor ecosystem. Intel's massive investment aimed at rebuilding its foundry business is expected to be focused on production. Industry insiders say Intel is in a strong position to make deals with European auto parts manufacturers such as Mercedes-Benz, BMW and Bosch.
The last obstacle, the issue of subsidies, also seems to have been resolved. According to the Financial Times on June 18 (local time), the German government has actually agreed to a proposal that offers more than the originally planned €6.8 billion (9.5 trillion won or US$7.4 billion) and up to €10 billion (about 14 trillion won or US$11 billion).
As is known, TSMC has also recently collected comments from the German government regarding the level of subsidies. TSMC is moving forward with the construction of a €10 billion semiconductor plant in Dresden, Germany. Although the German government initially said that it rejected Intel and TSMC's request for further subsidies, saying that "there was no more money", it eventually changed its stance and supported Europe's semiconductor renaissance.
Kyung Kye-hyeon, head of Samsung's semiconductor business (DS) division, recently visited various regions in Europe, including Tel Aviv in Israel, Munich and Stuttgart in Germany, Geneva in Switzerland and Amsterdam in the Netherlands, to check on the local business situation. However, Samsung has not yet announced any plans to build a semiconductor factory. The company appears to have sought to build large semiconductor plants in South Korea and the United States, and has judged that Europe is not yet ready to take advantage of the conditions for advanced processes.
After East Asia and the USA, Europe is becoming the new battleground for semiconductors. Since Europe announced its intention to use its top domestic semiconductor equipment and automotive semiconductor companies to exert influence in the global supply chain, leading global semiconductor companies, including TSMC and Intel, have confirmed significant investments in the region. The race for dominance in the semiconductor industry has become more complex as even the European Union (EU) has set its sights on this area.
A key partner in Europe's semiconductor renaissance is Intel, which announced on June 18 (local time) that it will invest US$25 billion (approximately 32 trillion won) in a new semiconductor plant in Israel, the largest foreign investment in the country's history. Although Israel is located in the Middle East, it is effectively categorised as part of the European semiconductor supply chain. Intel had previously announced an investment of 80 billion euros (112 trillion won or US$87 billion) to build state-of-the-art semiconductor factories and research facilities in Europe. Intel's Israel plant is expected to begin operations in 2027.
Intel already operates large semiconductor plants in Ireland and Germany. In addition, there are plans to build semiconductor production and test facilities in Poland and advanced semiconductor packaging and assembly plants in Italy. There are also plans to establish R&D centres in France and Spain.
Once known as the "king of semiconductors" because it dominated the PC semiconductor market, Intel has struggled since the 2000s to keep pace with new paradigms such as foundries (semiconductor manufacturing services), memory semiconductors and graphics processing units (GPUs). In the first quarter of this year, Intel reported the largest quarterly loss in its history - US$2.76 billion (approximately KRW3.5 trillion) - while increasing the scale of its investments amidst sluggish sales results.
Europe is home to the world's leading semiconductor equipment companies, such as ASML in the Netherlands and IMEC in Belgium, as well as cutting-edge research institutes. The fast-growing power semiconductor and automotive semiconductor markets are led by European companies such as NXP in the Netherlands, Infineon in Germany and STMicroelectronics in Switzerland. However, industry insiders point out that these companies are limited to certain areas, lack advanced process technology and have no choice but to entrust production to Samsung Electronics or TSMC, making them "half-baked" companies.
The EU's determination to build advanced semiconductor production facilities is the "final piece of the puzzle" for its domestic semiconductor ecosystem. Intel's massive investment aimed at rebuilding its foundry business is expected to be focused on production. Industry insiders say Intel is in a strong position to make deals with European auto parts manufacturers such as Mercedes-Benz, BMW and Bosch.
The last obstacle, the issue of subsidies, also seems to have been resolved. According to the Financial Times on June 18 (local time), the German government has actually agreed to a proposal that offers more than the originally planned €6.8 billion (9.5 trillion won or US$7.4 billion) and up to €10 billion (about 14 trillion won or US$11 billion).
As is known, TSMC has also recently collected comments from the German government regarding the level of subsidies. TSMC is moving forward with the construction of a €10 billion semiconductor plant in Dresden, Germany. Although the German government initially said that it rejected Intel and TSMC's request for further subsidies, saying that "there was no more money", it eventually changed its stance and supported Europe's semiconductor renaissance.
Kyung Kye-hyeon, head of Samsung's semiconductor business (DS) division, recently visited various regions in Europe, including Tel Aviv in Israel, Munich and Stuttgart in Germany, Geneva in Switzerland and Amsterdam in the Netherlands, to check on the local business situation. However, Samsung has not yet announced any plans to build a semiconductor factory. The company appears to have sought to build large semiconductor plants in South Korea and the United States, and has judged that Europe is not yet ready to take advantage of the conditions for advanced processes.
