Intel to Set Aside Production in Ireland for Auto Chips

Intel Corp. will dedicate production at its plant in Ireland for the manufacture of chips for automakers as the company pushes into a growing market currently buffeted by shortages that have crippled vehicle production.

The Santa Clara, California-based chipmaker has a facility in County Kildare in Ireland that has been used for manufacturing its mainstay computer processors. Intel will convert an unspecified amount of that plant’s output to producing other companies’ designs aimed at the automotive industry, Chief Executive Officer Pat Gelsinger said in a presentation in Munich Tuesday.

Automakers are redoubling efforts to secure semiconductors after the pandemic triggered shortages that will cost $110 billion in lost sales this year, according to Alix Partners. The crisis stems from poor planning during the pandemic and limited chipmaking capacity, but it’s been compounded by shrinking available cargo space and new outbreaks of the delta variant that are hobbling factories in Southeast Asia.