German state of Bavaria in talks with Intel on chip megafactory
U.S. chipmaker Intel Corp's logo is seen on their "smart building" in Petah Tikva, near Tel Aviv, Israel. December 15, 2019. REUTERS/Amir Cohen/File Photo
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June 18 (Reuters) - Germany's southern state of Bavaria is in talks with Intel (INTC.O) to build a European chip factory in a bid to counter supply bottlenecks that have hampered production in the automotive sector, the local economy minister said on Friday.
In recent months, the U.S. chipmaker has been seeking 8 billion euros ($9.5 billion) in public subsidies to build a semiconductor manufacturing site in Europe. read more
"I strongly support this," said Economy Minister Hubert Aiwanger, whose state is home to luxury carmaker BMW (BMWG.DE). "The possible location of a large international semiconductor manufacturer in Bavaria is an outstanding opportunity."
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Bavaria has suggested a disused air base in Penzing-Landsberg, west of Munich as a possible location for the factory, Aiwanger said.
A shortage of semiconductors is causing headwinds for Europe's car manufacturers and threatens to de-rail Germany's economic recovery from the coronavirus pandemic.
The European Union is considering creating a semiconductor alliance including STMicroelectronics, NXP, Infineon and ASML to cut dependence on foreign chipmakers during a global supply chain crunch. read more
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