Intel CEO Pat Gelsinger this week entered talks with European leaders to address semiconductor supply chain challenges and reduce reliance on imports.

The talks come just over a month after the newly appointed CEO announced Intel's intent to enter the foundry business, competing against rivals like Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics. Intel initially announced two new foundries in Arizona as part of its Integrated Design Manufacturing 2.0 — or IDM 2.0 — initiative for the Intel Foundry Services business unit.

Gelsinger, at the time, teased additional foundry plans for the U.S., Europe, and elsewhere within the year.

Much of this push is predicated on a global semiconductor shortage which has already hobbled the automotive industry and threatened others. And unfortunately, the remedy to this situation won’t come quickly or cheaply. Intel expects to spend $20 billion on its Arizona chip fabs, but neither facility is expected to come online for several years. To offset the cost of the new fabs, Intel is also working with the state of Arizona and the Biden administration to secure subsidies, however, it has yet to land any.

Intel is now seeking similar support for its planned European foundry facility. Gelsinger is asking for approximately $10 billion in subsidies from EU member countries, according to a Politico report. Unless the cost of constructing a foundry in Europe differs demonstrably from the U.S., this would effectively mean Intel is asking EU leaders to pay for the foundry in its entirety.

Intel, however, has denied the scope of this reported request. “With regards to EU semiconductor incentives, Intel has not requested a specific amount. However, as our CEO has said, EU leaders must make the necessary investments to ensure a vibrant semiconductor industry, build resilient supply, and expand innovation for the long term. Currently, it can cost 20 to 40% more to operate a fab in Europe or the U.S. compared to Asian countries. As we look across Europe and the U.S. to help balance the global supply chain of silicon, we are encouraged by the response that we have received from government leaders,” an Intel spokesperson said in a statement provided to SDxCentral.

Intel isn’t the only chipmaker courting EU leaders. European Commissioner Thierry Breton also met with TSMC early Friday to discuss the prospect of bringing foundries to the region, according to a Reuters report.

“To meet current and future semiconductor industry demand, Europe will drastically increase production capacity — both on its own and through selected partnerships to ensure security of supply,” Breton wrote in a Tweet.

TSMC is the largest semiconductor manufacturer in the world and is contracted by several of Intel’s competitors, including AMD, Apple, Qualcomm, and Nvidia among others, to produce semiconductors. The company recently announced a $100 billion increase in capital expenditures to combat the chip shortage.

Making things more challenging for Intel, TSMC’s process technology is several generations ahead at this point. The foundry is currently mass-producing chips on a 5-nanometer process node, with 3-nanometer chips on track to ship in the second half of 2022. What’s more, TSMC’s largest rival, Samsung Electronics, has managed to achieve process parity in recent years, with a 3-nanometer also on the horizon.

Intel, by contrast, is only now ramping production of 10-nanometer processors, with 7-nanometer chips delayed until early 2023. The chipmaker does, however, plan to institute radical changes to its chip production to allow for chip-on-package as well as vertically stacked chip-lets, which promise to boost further transistor density.

Gelsinger will move onto Israel next week, where he is expected to announce a $200 million investment in a new chip development campus, and the hiring of 1,000 staff, Reuters reports.