Intel Chief Executive Officer, Kicking Pat Gelsinger, said the company was planning two chip factories at a new site in Europe and could potentially expand it further, with the increases raising the total investment over about a decade to the equivalent of as much as 80 billion euros.
The facilities would cater to meteoric demand for semiconductors as computers, cars and gadgets become more chip-hungry.
"This new era of sustained demand for semiconductors needs bold, big thinking", he said at an auto industry event in Munich.
Most of the bi chipmakers are expanding their chip products and there is talk of some consolidation in the industry.
Taiwan Semiconductor Manufacturing said it would spend a record $100 billion over the next three years to increase production capacity. Samsung Electronics said it will boost investments by one third to more than $205 billion over the next three years, in part to pursue leadership in chip manufacturing.
Intel said it plans to commit manufacturing capacity at a factory in Ireland to the auto-chip sector. And it is standing up a chip design team to help others adapt designs so they can use Intel's manufacturing capabilities. Intel's contract chip-making business has been courting potential customers in Europe, including automotive companies, the company said.