Intel rules out UK chip factory because of Brexit

CEO Pat Gelsigner says that the UK was initially being considered as part of $95bn spending plan.

Intel is no longer considering the UK as a possible location for a new chip factory in Europe following its exit from the EU.

Speaking to the BBC, Gelsinger said that he was forced to rule out the UK after Brexit, claiming that the UK was previously being considered as part of its $95bn plans to upgrade existing chip manufacturing sites and open new ones globally over the next 10 years.

"Post Brexit… we're looking at EU countries and getting support from the EU," he said.

He said Intel was "absolutely seeking sites for consideration in the UK" but that these plans changed after Brexit.

"I have no idea whether we would have had a superior site from the UK," he said. "But we now have about 70 proposals for sites across Europe from maybe 10 different countries."

Gelsinger said that he is hopeful to get an agreement on a new site, as well as support from the EU before the end of the year.

Intel first revealed that it was looking for a European site with at least 1,000 acres of land in July. The chip vendor wants to build at least one manufacturing plant and one advanced packaging site in Europe with countries including Belgium, France, Germany and the Netherlands reported as potential locations.