Utopia Talk - Politics - Brexit: no Intel chip factory in UK

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Utopia Talk / Politics / Brexit: no Intel chip factory in UK

EuropeanPussy
Member Fri Oct 08 03:25:59
http://www.bbc.com/news/business-58820599

Intel not considering UK chip factory after Brexit

1 day ago

The boss of Intel says the US chipmaker is no longer considering building a factory in the UK because of Brexit.

Pat Gelsinger told the BBC that before the UK left the EU, the country "would have been a site that we would have considered".

But he added: "Post-Brexit... we're looking at EU countries and getting support from the EU".

Intel wants to boost its output amid a global chip shortage that has hit the supply of cars and other goods.

The firm - which is one of the world's largest makers of semiconductors - says the crisis has shown that the US and Europe are too reliant on Asia for its chip-making needs.

Intel is investing up to $95bn (£70bn) on opening and upgrading semiconductor plants in Europe over the next 10 years, as well as boosting its US output.

But while Mr Gelsinger said the firm "absolutely would have been seeking sites for consideration" in the UK, he said Brexit had changed this.

"I have no idea whether we would have had a superior site from the UK," he said. "But we now have about 70 proposals for sites across Europe from maybe 10 different countries.

"We're hopeful that we'll get to agreement on a site, as well as support from the EU... before the end of this year."

Microchips are vital components in millions of products from cars to washing machines, but they have been in short supply this year due to surging demand and supply chain issues.

It has led to shortages of popular goods like cars and computers and driven up prices - issues Mr Gelsinger said were set to continue into Christmas.

"There is some possibility that there may be a few IOUs under the Christmas trees around the world this year," he said.

"Just everything is short right now. And even as I and my peers in the industry are working like crazy to catch up, it's going to be a while."

He said things would "incrementally" improve next year but were unlikely to stabilise until 2023.

Intel's expansion comes as the overall market for semi-conductors is set more than double in the next seven years to around $800bn.

The firm also hopes to secure subsidies from US and European politicians, who feel their reliance on Asia for chips could threaten national security.

Today the US only produces around 12% of the world's semiconductors, while Korea's Samsung and Taiwan Semiconductor Manufacturing Company (TSMC) account for 70% of global supply.

"It is clearly part of the motivation of a globally balanced supply chain that nobody should be too dependent on somebody else," Mr Gelsinger told the BBC.

Intel will continue outsourcing some of its chip-making but eventually hopes to make most of its products in-house. Competing won't be easy, though.

Chip-making is still far cheaper in Asia and Intel's rivals continue to expand. TSMC, the world's largest contract maker of semi-conductors, will spend $100bn on increasing capacity over the next three years while Samsung invests $205bn.

Mr Gelsinger said he is confident Intel can still regain its leading edge. "This is an industry that we created in the US, Intel's the company that puts silicon into Silicon Valley," he said.

"But we realise these are good companies, they're well capitalised, they're investing, they're innovating together. So we have to re-earn that right of unquestioned leadership."

Seb
Member Fri Oct 08 06:00:36
Shannon will explain how the UK doesn't want crap low value jobs like chip fab.

We want good, will paid jobs of the future like fruit picking and lorry driving.

murder
Member Fri Oct 08 10:06:28

"Pat Gelsinger told the BBC that before the UK left the EU, the country "would have been a site that we would have considered"."

Clearly he's just being an asshole. There was absolutely no need for him to mention Brexit.

Seb
Member Fri Oct 08 12:15:54
Murder:

Nah, govts been banging on about how is angling for a Fab and it was supposedly one of the reasons we needed to have freedom from the EU to allow us to break free from their rules and subsidise this sort of thing.

Pillz
Member Fri Oct 08 12:45:37
Source

murder
Member Fri Oct 08 16:50:11

"Nah, govts been banging on about how is angling for a Fab and it was supposedly one of the reasons we needed to have freedom from the EU to allow us to break free from their rules and subsidise this sort of thing."

OK but he could have said that the UK wasn't under consideration for the factory without saying that Brexit closed that door. Clearly he has an opinion on the topic, and that opinion is that it was stupid.

Seb
Member Fri Oct 08 18:03:28
Murder:

He's the CEO of the company, so if he says brexit is the reason (and it obviously would be - why would he want customs duties to the dominant regional market and his upstream and downstream just-in-time supply chains at risk of disruption and delay from customs procedures...), It's probably the reason right?

I know it's embarrassing to the brexit backing govt, but don't the public deserve to know why Intel won't consider building a Fab here?

Or are we not allowed to know anything that embarrasses politicians that promised Brexit would lead to the exact opposite?

murder
Member Fri Oct 08 18:43:39

What you're entitled to know and what the CEO of a company has good reason to say are two separate things.

Seb
Member Sat Oct 09 05:04:34
Murder:

Well he did say it, and I think he has no reason not to say it.

You are the one strangely arguing that in doing so he was being an asshole.

An asshole to who? Brexiteers, particularly the current UK govt are the only real candidates and I don't see why the default should be to say nothing. He owes them no favours, fears from them no consequence.

What's asshole behaviour is how so many businesses said nothing about brexit during the referendum while making plans to leave, even as the now govt loudly attacked anyone reporting that as "project fear".

By not speaking out, they helped let liars hijack a country.

I would welcome more transparency from business leaders on what they think policy impacts will be to their business, and let their customers, employees and investors decide how that might affect their vote.

This is far less disruptive than attempted regulatory capture by political donations.

show deleted posts

EuropeanPussy Member	Fri Oct 08 03:25:59 http://www.bbc.com/news/business-58820599 Intel not considering UK chip factory after Brexit 1 day ago The boss of Intel says the US chipmaker is no longer considering building a factory in the UK because of Brexit. Pat Gelsinger told the BBC that before the UK left the EU, the country "would have been a site that we would have considered". But he added: "Post-Brexit... we're looking at EU countries and getting support from the EU". Intel wants to boost its output amid a global chip shortage that has hit the supply of cars and other goods. The firm - which is one of the world's largest makers of semiconductors - says the crisis has shown that the US and Europe are too reliant on Asia for its chip-making needs. Intel is investing up to $95bn (£70bn) on opening and upgrading semiconductor plants in Europe over the next 10 years, as well as boosting its US output. But while Mr Gelsinger said the firm "absolutely would have been seeking sites for consideration" in the UK, he said Brexit had changed this. "I have no idea whether we would have had a superior site from the UK," he said. "But we now have about 70 proposals for sites across Europe from maybe 10 different countries. "We're hopeful that we'll get to agreement on a site, as well as support from the EU... before the end of this year." Microchips are vital components in millions of products from cars to washing machines, but they have been in short supply this year due to surging demand and supply chain issues. It has led to shortages of popular goods like cars and computers and driven up prices - issues Mr Gelsinger said were set to continue into Christmas. "There is some possibility that there may be a few IOUs under the Christmas trees around the world this year," he said. "Just everything is short right now. And even as I and my peers in the industry are working like crazy to catch up, it's going to be a while." He said things would "incrementally" improve next year but were unlikely to stabilise until 2023. Intel's expansion comes as the overall market for semi-conductors is set more than double in the next seven years to around $800bn. The firm also hopes to secure subsidies from US and European politicians, who feel their reliance on Asia for chips could threaten national security. Today the US only produces around 12% of the world's semiconductors, while Korea's Samsung and Taiwan Semiconductor Manufacturing Company (TSMC) account for 70% of global supply. "It is clearly part of the motivation of a globally balanced supply chain that nobody should be too dependent on somebody else," Mr Gelsinger told the BBC. Intel will continue outsourcing some of its chip-making but eventually hopes to make most of its products in-house. Competing won't be easy, though. Chip-making is still far cheaper in Asia and Intel's rivals continue to expand. TSMC, the world's largest contract maker of semi-conductors, will spend $100bn on increasing capacity over the next three years while Samsung invests $205bn. Mr Gelsinger said he is confident Intel can still regain its leading edge. "This is an industry that we created in the US, Intel's the company that puts silicon into Silicon Valley," he said. "But we realise these are good companies, they're well capitalised, they're investing, they're innovating together. So we have to re-earn that right of unquestioned leadership."
Seb Member	Fri Oct 08 06:00:36 Shannon will explain how the UK doesn't want crap low value jobs like chip fab. We want good, will paid jobs of the future like fruit picking and lorry driving.
murder Member	Fri Oct 08 10:06:28 "Pat Gelsinger told the BBC that before the UK left the EU, the country "would have been a site that we would have considered"." Clearly he's just being an asshole. There was absolutely no need for him to mention Brexit.
Seb Member	Fri Oct 08 12:15:54 Murder: Nah, govts been banging on about how is angling for a Fab and it was supposedly one of the reasons we needed to have freedom from the EU to allow us to break free from their rules and subsidise this sort of thing.
Pillz Member	Fri Oct 08 12:45:37 Source
murder Member	Fri Oct 08 16:50:11 "Nah, govts been banging on about how is angling for a Fab and it was supposedly one of the reasons we needed to have freedom from the EU to allow us to break free from their rules and subsidise this sort of thing." OK but he could have said that the UK wasn't under consideration for the factory without saying that Brexit closed that door. Clearly he has an opinion on the topic, and that opinion is that it was stupid.
Seb Member	Fri Oct 08 18:03:28 Murder: He's the CEO of the company, so if he says brexit is the reason (and it obviously would be - why would he want customs duties to the dominant regional market and his upstream and downstream just-in-time supply chains at risk of disruption and delay from customs procedures...), It's probably the reason right? I know it's embarrassing to the brexit backing govt, but don't the public deserve to know why Intel won't consider building a Fab here? Or are we not allowed to know anything that embarrasses politicians that promised Brexit would lead to the exact opposite?
murder Member	Fri Oct 08 18:43:39 What you're entitled to know and what the CEO of a company has good reason to say are two separate things.
Seb Member	Sat Oct 09 05:04:34 Murder: Well he did say it, and I think he has no reason not to say it. You are the one strangely arguing that in doing so he was being an asshole. An asshole to who? Brexiteers, particularly the current UK govt are the only real candidates and I don't see why the default should be to say nothing. He owes them no favours, fears from them no consequence. What's asshole behaviour is how so many businesses said nothing about brexit during the referendum while making plans to leave, even as the now govt loudly attacked anyone reporting that as "project fear". By not speaking out, they helped let liars hijack a country. I would welcome more transparency from business leaders on what they think policy impacts will be to their business, and let their customers, employees and investors decide how that might affect their vote. This is far less disruptive than attempted regulatory capture by political donations.
	show deleted posts

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