Benzinga | Dec 23, 2021 06:58AM EST

Intel's France, Germany, Italy Plans: All You Need To Know

Intel aims to bring more production back to the U.S. and Europe, counterbalancing Asia's manufacturing dominance.

* Intel Corp (NASDAQ:INTC) looks to add facilities in France and Italy and put a critical production site in Germany in its bid to go global, Bloomberg reports.

* France will be home to a research and design center, and Italy will be the location of a test and assembly factory.

* The central wafer fabrication plant, or fab, will likely be built in Germany.

* State-of-the-art chip production plants cost over $20 billion, and their most expensive component, machinery, is usually obsolete within five years.

* The German plant could have a price tag in that range. Meanwhile, the report added that the Italian test and assembly plant would cost around $10 billion.

* Intel and government officials are still negotiating on the site, with Sicily being one area under consideration.

* Intel may build the French R&D center in either Paris or Grenoble. Such facilities typically cost only a fraction of the amount needed to make a factory.

* Even with the potential government help, Intel is budgeting up to $28 billion for new plants and equipment in 2022, up from roughly $18 billion this year.

* The report added that Intel looks to build factories that make chips for other companies, directly rivaling Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) in the so-called foundry business.

* Price Action: INTC shares traded lower by 0.14% at $50.90 in the premarket session on the last check Thursday.