UK markets close in 6 hours 2 minutes
  • FTSE 100

    7,498.24
    -8.87 (-0.12%)
     
  • FTSE 250

    20,250.38
    -47.62 (-0.23%)
     
  • AIM

    924.15
    +4.37 (+0.48%)
     
  • GBP/EUR

    1.1827
    -0.0030 (-0.26%)
     
  • GBP/USD

    1.2222
    +0.0004 (+0.03%)
     
  • BTC-GBP

    20,025.50
    +1,056.63 (+5.57%)
     
  • CMC Crypto 200

    576.46
    +45.24 (+8.52%)
     
  • S&P 500

    4,210.24
    +87.77 (+2.13%)
     
  • DOW

    33,309.51
    +535.11 (+1.63%)
     
  • CRUDE OIL

    92.73
    +0.80 (+0.87%)
     
  • GOLD FUTURES

    1,804.70
    -9.00 (-0.50%)
     
  • NIKKEI 225

    27,819.33
    -180.63 (-0.65%)
     
  • HANG SENG

    20,082.43
    +471.59 (+2.40%)
     
  • DAX

    13,676.67
    -24.26 (-0.18%)
     
  • CAC 40

    6,522.79
    -0.65 (-0.01%)
     

German state of Bavaria in talks with Intel on chip megafactory

·1-min read
FILE PHOTO: U.S. chipmaker Intel Corp's logo is seen on their "smart building" in Petah Tikva, near Tel Aviv

(Reuters) - Germany's southern state of Bavaria is in talks with Intel 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.

"I strongly support this," said Economy Minister Hubert Aiwanger, whose state is home to luxury carmaker BMW. "The possible location of a large international semiconductor manufacturer in Bavaria is an outstanding opportunity."

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.

($1 = 0.8426 euros)

(Reporting by Christina Amann; Writing by Zuzanna Szymanska; Editing by Caroline Copley)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting