UK loses Intel chip factory consideration due to Brexit
Brexit means Intel is no longer interested in the UK for its chip factory plans.
What you need to know
- Intel has been making big moves with chip factory developments both domestically and abroad.
- The UK would have been considered for one of the company's chip factory projects, pre-Brexit.
- Now, Intel CEO Pat Gelsinger says the UK is off the table and that his company's focus is on the EU.
In a conversation with the BBC, Intel CEO Pat Gelsinger stated that his company's chip factory plans would've considered the UK had it not been for Brexit.
"Post-Brexit... we're looking at EU countries and getting support from the EU," he said, making it clear that the (up to) $95 billion Intel will be investing in Europe over the next decade won't include the UK as a top priority.
"I have no idea whether we would have had a superior site from the UK," he continued. "But we now have about 70 proposals for sites across Europe from maybe 10 different countries."
Gelsinger went on to say that he's hoping plans for the upcoming developments start to solidify before the end of 2021 and that chip factory work can get underway. The desire for speed is a result of the global semiconductor shortage ravaging certain economies and industries while exacerbating tensions in situations such as the chipmaking war between the U.S. and China.
In his talk with the BBC, Gelsinger projected noticeable improvements in chip supply to be visible by 2023, when the market will hopefully stabilize. He also reiterated the importance of not over-relying on Asia for chips.
The chip shortage has affected a wide range of entities, from automakers to the manufacturers of the best graphics cards. There are a few alternative solutions being found for the current crisis, but they're not enough to singlehandedly solve the problem.
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Robert Carnevale is the News Editor for Windows Central. He's a big fan of Kinect (it lives on in his heart), Sonic the Hedgehog, and the legendary intersection of those two titans, Sonic Free Riders. He is the author of Cold War 2395. Have a useful tip? Send it to firstname.lastname@example.org.
Obviously Brexit is far from being 'done' with, at the moment, more downsides becoming apparent than upsides.
The Covid pandemic is still being used as a smokescreen but as it clears we can anticipate the problems associated with Brexit to become more clearly understood.
As noted below in the comments it is obvious that the Conservative Party is ebulliently effervescent about the decision and the Labour Party seems to be keeping its powder dry so the moment of reckoning doesn't seem to be imminent.
Thus there is still UK indecision so it is no wonder that, faced with a choice, Intel has made the 'safe' decision.
Brexit as in "leaving the political union" was the right decision. But leaving the single market and all European agreements was really really dumb.
Even countries that wisely don't want to join the EU - like Norway, Iceland or Switzerland - were still smart enough to join the EFTA or other free trade agreements to ensure they're still part of the only beneficial thing about the EU.
Not the UK.
They thought leaving the EU wasn't enough of a middle-finger to Brussels and, out of spite, they decided to leave everything because the EU didn't agree to let them have the cake and eat it.
As a result, we see this.
And it won't stop here.
British small businesses have already gone into hard times because the taxes and customs fees, alongside the hiking in prices of couriers and other transportation businesses, have driven away most of their European customers. Investors will think twice before opening up factories in the UK since, well, exporting anything now will have additional costs both financial and bureaucratic. And manufacturers - like Intel - rather move production to the continent to avoid, at the very least, all the paperwork. At this point, Britain desperately needs a ruler with common sense and enough guts to swallow their pride and negotiate their re-entering into a proper Free Trade Agreement of some sort. Unfortunately...no such person is in charge of neither the Conservatives and much less the Labour Party.
If none emerges soon...heck, have the Queen go to Parliament and dress down the whole lot on national television. Maybe the public shaming will make them come to their senses.