T0@st
News Editor
- Joined
- Mar 7, 2023
- Messages
- 2,284 (3.28/day)
- Location
- South East, UK
Intel executives are reportedly dealing with a major challenge that affects its portfolio of European manufacturing facilities—a recent RTÉ News article placed focus on Team Blue's Fab 34 site, located in Leixlip, Ireland. Energy costs are climbing across the globe, but inside sources believe that company leaders have expressed concern regarding the cost of powering the Irish facility. Last week's report posits that senior Intel figures are committed to keeping Fab 34 alive for a while—seemingly unaffected by a widespread cost-cutting initiative—this high-volume production site remains: "critical to its European operation for at least the next seven years."
Intel is reportedly already engaged in talks with the Irish government—likely negotiating over strategies that will lower its local energy bills in County Kildare. Additionally, other channels are—supposedly—being explored via the EU Chips Act. RTÉ News gathered comments from unnamed senior sources at the recently concluded Davos World Economic Forum—one individual stated that Ireland's (advantageous) lower labor costs are sharply offset by the higher cost of energy. The report claims that Team Blue: "estimates that in Ireland energy costs are 15 cent per kilowatt-hour, around double that in other markets where Intel operates." Fab 34's operating costs have been compared to similarly-equipped facilities in the USA and Israel. Executive sources believe that Ireland-specific problems stem from infrastructure backlogs in the renewable sector, and the fixed cost of delivering energy from offshore wind farms—the latter tends to pass expenses on to customers.
View at TechPowerUp Main Site | Source
Intel is reportedly already engaged in talks with the Irish government—likely negotiating over strategies that will lower its local energy bills in County Kildare. Additionally, other channels are—supposedly—being explored via the EU Chips Act. RTÉ News gathered comments from unnamed senior sources at the recently concluded Davos World Economic Forum—one individual stated that Ireland's (advantageous) lower labor costs are sharply offset by the higher cost of energy. The report claims that Team Blue: "estimates that in Ireland energy costs are 15 cent per kilowatt-hour, around double that in other markets where Intel operates." Fab 34's operating costs have been compared to similarly-equipped facilities in the USA and Israel. Executive sources believe that Ireland-specific problems stem from infrastructure backlogs in the renewable sector, and the fixed cost of delivering energy from offshore wind farms—the latter tends to pass expenses on to customers.
View at TechPowerUp Main Site | Source
