Canada markets open in 1 hour 19 minutes
  • S&P/TSX

    20,230.40
    +57.05 (+0.28%)
     
  • S&P 500

    4,400.64
    -0.82 (-0.02%)
     
  • DOW

    34,930.93
    -127.59 (-0.36%)
     
  • CAD/USD

    0.8019
    +0.0034 (+0.43%)
     
  • CRUDE OIL

    72.82
    +0.43 (+0.59%)
     
  • BTC-CAD

    49,462.85
    -1,446.29 (-2.84%)
     
  • CMC Crypto 200

    929.07
    -0.86 (-0.09%)
     
  • GOLD FUTURES

    1,825.40
    +25.70 (+1.43%)
     
  • RUSSELL 2000

    2,224.96
    +33.12 (+1.51%)
     
  • 10-Yr Bond

    1.2610
    0.0000 (0.00%)
     
  • NASDAQ futures

    14,997.75
    -13.75 (-0.09%)
     
  • VOLATILITY

    17.71
    -1.65 (-8.52%)
     
  • FTSE

    7,081.88
    +65.25 (+0.93%)
     
  • NIKKEI 225

    27,782.42
    +200.76 (+0.73%)
     
  • CAD/EUR

    0.6748
    +0.0007 (+0.10%)
     

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