In recent years, the semiconductor industry has undergone quite a change. Shortages of silicon and chips combined with a global pandemic have taken a heavy toll. Despite this turmoil, Taiwan still looks safe in dominating the counterfeit industry. (opens in new tab)uncertainty has seen other countries try to jump into the mix.
The United States is among the countries eager to join the new fab built on the CHIP Act and even enforcing sanctions against China. (opens in new tab) Another place to see a big boost to the industry is Europe (opens in new tab)but a new state-of-the-art foundry under construction in Germany (opens in new tab) It looks like it will be much more expensive than originally planned.
In early 2022, Intel announced it would build a new chip manufacturing plant in Magdeburg, Germany. The state-of-the-art foundry was set to cost him a whopping €17 billion, with about €7 billion funded by the government. Well, according to Reuters (opens in new tab)government sources say Intel wants to get the job done by increasing its government contribution to over 10 billion euros.
Neither Intel nor the German government have confirmed this figure yet, so we can’t know for sure. It remains to be seen whether it will reach 3 billion euros.
Intel cites rising energy costs as a big factor why fabs need more money. He also mentioned the use of more advanced manufacturing techniques that could drive up costs significantly. When TSMC ramps up its new North American fab from his 4nm to 3nm production (opens in new tab)the company was similarly tight-lipped about the funding needed to do so.
We don’t know exactly which fab Intel’s new German foundry is set up for, but given that 2nm production is slated for 2026. (opens in new tab), it may be that the company sees its future. However, Intel’s CEO has previously said the chip shortage will last until 2024, he said. In that case, you could end up with a fab that can handle chips of varying sizes. It would be a surprise if Intel already had a pure 2nm fab ready, but that would be great. If so, neither you nor I are likely to see a device that does anything from this fab for years to come.
