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AMD Considers European Chip Factories Amid EU Incentives

  //politics-government.news-articles.net/content/ .. -european-chip-factories-amid-eu-incentives.html
  Published in Politics and Government on Thursday, February 12th 2026 at 22:46 GMT by The Financial Times
      Locales: UNITED STATES, UNITED KINGDOM

Friday, February 13th, 2026 - Advanced Micro Devices (AMD) is seriously evaluating the construction of new semiconductor manufacturing facilities within Europe, a move spurred by the substantial financial incentives offered through the European Union's 'Chips Act'. This potential expansion represents a significant strategic shift for the US-based chipmaker, aiming to diversify its production base and enhance its competitive position against industry giants like Intel and Taiwan Semiconductor Manufacturing Company (TSMC).

The EU's Chips Act, formally launched in 2025, is a cornerstone of the continent's ambition to significantly bolster its semiconductor industry. The legislation promises billions of euros in subsidies and tax breaks to attract investment in chip design, manufacturing, and related technologies. AMD is currently conducting feasibility studies to determine optimal locations and the potential scale of operations for a European facility.

"Europe is undoubtedly a key area of focus for our future expansion," a source close to AMD confirmed. "The economic benefits offered by the Chips Act are compelling, making a European presence a strategically sound consideration."

Currently, AMD relies predominantly on third-party foundries, primarily TSMC in Asia, for the fabrication of its chips. This reliance creates geographical vulnerabilities within the supply chain, exposing the company to risks associated with geopolitical instability, logistical disruptions, and increasing manufacturing costs. Establishing its own manufacturing footprint in Europe would mitigate these risks and offer greater control over the production process.

EU's Ambitious Goals and the Race for Investment

The Chips Act isn't simply about attracting investment; it's about fundamentally reshaping the European semiconductor landscape. The EU aims to double its share of global chip production from a current 10% to 20% by 2030. A more specific target is to secure 20% of the world's most advanced chip production within Europe, moving the continent away from its historical dependence on Asian manufacturers. This ambitious goal underscores the strategic importance of semiconductors to the EU's economic future and technological sovereignty.

This has ignited a competitive fervor among European nations, each eager to attract AMD - and other chipmakers - with the most attractive investment packages. Countries are offering a combination of direct subsidies, infrastructure development support, streamlined regulatory processes, and access to a skilled workforce. Poland, Germany, France, and Italy are frequently cited as potential host locations, each boasting varying strengths in terms of industrial infrastructure, research capabilities, and government support.

Challenges Remain for AMD's European Venture

While the incentives are substantial, AMD faces considerable challenges in establishing a successful European operation. Europe's regulatory environment is known for its complexity, with stringent environmental regulations and labor laws that can add to the cost and timeline of construction and operation. Finding a suitable location that offers both financial incentives and the necessary infrastructure - including reliable power supply, water resources, and transportation networks - will be critical.

Perhaps the most significant hurdle is the availability of a skilled workforce. Semiconductor manufacturing requires a highly specialized workforce, including engineers, technicians, and scientists. Europe currently faces a shortage of qualified personnel in these fields, necessitating significant investment in education and training programs to meet AMD's potential staffing needs. Recent reports indicate that collaborative efforts between EU governments and academic institutions are underway to address this skill gap.

Impact on the Global Semiconductor Landscape

AMD's decision to invest in Europe - should it proceed - would have ripple effects throughout the global semiconductor industry. It would contribute significantly to the EU's ambition of becoming a more self-sufficient chip producer, reducing its dependence on Asian suppliers. This diversification would enhance supply chain resilience and reduce the risk of disruptions caused by geopolitical events or natural disasters. Furthermore, a strong European semiconductor industry would foster innovation and create high-skilled jobs within the region.

Analysts predict that AMD's investment could also trigger further investment from other chipmakers, accelerating the growth of the European semiconductor ecosystem. TSMC is already building a facility in Germany, and Intel has announced plans for a massive investment in Poland. These developments signal a fundamental shift in the global semiconductor landscape, with Europe emerging as a major player in the years to come.