The global semiconductor industry is currently undergoing a transformation triggered by the United States’ changes to its chip policiesThe new era, often referred to as "de-Americanization," is now sweeping across the globe, with China and Europe leading the chargeThe aim is to reduce reliance on American technology and build independent, robust semiconductor ecosystems within their borders. 

In China, this shift has led to concerted efforts across major research institutions like the Chinese Academy of Sciences, which have formed specialized teams to tackle advanced semiconductor technologyThe Chinese government has set ambitious goals, including achieving 70% self-sufficiency in chip production by 2025. This push towards "Made in China" chips is not just about economic independence, but also about securing technological sovereignty in a rapidly digitizing world.

But China is not alone in this quest

Europe, too, has recognized the strategic importance of securing its own semiconductor supply chainIn 2022, 17 European nations came together to release a joint statement emphasizing their desire to invest heavily in semiconductor productionTheir plan? A massive €145 billion investment to create a chip industry that would be independent of American technology, with a goal of achieving self-sufficiency in semiconductor production by 2023. This was a bold declaration of Europe's intention to escape the stranglehold of U.S.-dominated chip technology.

Yet, just as Europe was solidifying its commitment to "de-Americanization," an intriguing development has emergedItaly, one of the European Union’s key members, has made a significant move that contradicts the region’s previous rhetoric about technological independenceRecently, Reuters reported that the Italian government is preparing to offer an enticing proposal to Intel, the American chip giant, in an attempt to secure a massive investment in an advanced chip manufacturing facility within Italy

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Sources close to the negotiations have revealed that Rome is in deep discussions with Intel about this project, which is expected to exceed €4 billion in initial investmentHowever, the potential investment could rise as high as €8 billion, roughly $8.6 billion USD, or approximately 59.2 billion yuanThis would make it one of the largest foreign investments in Italy in recent years.

This move has raised eyebrows across EuropeIntel, after all, is an American company, deeply rooted in U.S.-based technological systems and researchThe company’s technology, its core intellectual property, and the critical equipment it uses are all intricately tied to American innovationsAt a time when Europe is pushing to sever its technological dependence on the U.S., reaching out to an American company for such a monumental investment seems paradoxical. 

From a purely business standpoint, it makes sense that Europe would court Intel

The company has long been a leader in semiconductor manufacturing, and with its recent statements about regaining its position as the number one global chipmaker—pushing to surpass rivals like TSMC and Samsung—Intel is an attractive partner for any region seeking to bolster its tech industryHowever, the irony cannot be overlooked: Intel, as a U.Sfirm, would bring with it the very technological ties that Europe is striving to escape.

In fact, the ideal partner for Europe’s de-Americanization strategy would likely be Taiwan’s TSMC (Taiwan Semiconductor Manufacturing Company). As the world’s largest contract chipmaker, TSMC has an established, independent technology and manufacturing infrastructure that doesn’t rely on U.S.-based systems or suppliesOver the past few years, TSMC has also made concerted efforts to expand its supply chain outside the U.S., positioning itself as a key player in a more diversified global semiconductor landscape

For Europe, this would be a more logical fit if the goal is to reduce dependence on American technology.

However, as history often shows, geopolitical and economic realities are rarely straightforwardWhile TSMC has been increasingly approached by other global powers—especially the U.Sand Japan—Europe has been less successful in wooing the Taiwanese companyOne of the factors at play here is that TSMC is already heavily invested in expanding its manufacturing capabilities in the U.Sand Japan, making it less likely that it will prioritize Europe in the immediate futureIn contrast, Intel, despite its American roots, is actively looking to expand its operations in Europe, which makes the company a more viable candidate for European investments in the short term.

Thus, Europe’s decision to partner with Intel is likely driven by a combination of necessity and strategic timing

Italy, recognizing Intel's global prominence in chip manufacturing, may see an opportunity to stabilize the region’s chip ecosystem by securing Intel’s commitment to local productionOnce that foundation is set, Europe may then continue its efforts to de-Americanize its semiconductor supply chain, potentially turning to companies like TSMC for future collaborations.

In conclusion, while Europe’s outreach to Intel may seem contradictory to its broader goals of de-Americanization, it is likely a pragmatic decision to establish a foothold in the global semiconductor marketBy attracting Intel to invest in advanced chip manufacturing within its borders, Europe can solidify its position as a key player in the industry, even as it continues to work towards technological independence in the long runThe reality is that in the world of semiconductor production, where technological expertise and infrastructure take decades to build, short-term strategies often require compromises