Nadine Schimroszik & Supantha Mukhaerjee

BERLIN/STOCKHOLM – Intel (NASDAQ) has announced that it will invest over $20 billion in two new American semiconductor plants. This is in stark contrast with its silence last year about European plans.

In September, the company announced that it would invest up to $95 billion in Europe in the next 10 years and also announces the location of two new European chip manufacturing plants before 2021.

However, no official announcement was made. Intel, however, laid out plans for a huge new site of manufacturing near Columbus on Friday.

Analysts believe that the company may wait for new legislation to be passed before choosing a European site. European Chips Act is intended to lessen the continent’s dependence upon Asian suppliers of advanced semiconductors. It will also subsidise the development and operation of large chip factories locally.

Intel was in discussions with several European countries during its search for a site, which included those of Germany as well as Italy.

“We are very excited by the conversation we are having. An Intel spokesperson claimed that while the details of these conversations are private, they would make an announcement as soon possible.

Gartner (NYSE: ) Alan Priestley, a chip analyst at Intel, stated that there was less pressure to find a location in Europe with the Ohio plan.

He said, “They might also delay the decision if the European Chip Act is expected to have a material impact on financing.”

Industry analysts believe that the European Commission will present legislation by February 1.

Ondrej Burkacky is a McKinsey partner and said that any extra capacity should be started now. It can take up to three to four more years before a chip plant can reach significant production.

Germany is the top candidate, with Penzing in Bavaria, Magdeburg and Dresden trying to lure Intel.

Penzing mayor said to Reuters, December 2012 that he hadn’t heard from Intel.

Last year, chip shortages forced European carmakers to reduce production as they competed with electronics manufacturers to purchase semiconductors.

Three Asian suppliers account for most of the chips used in Europe: Taiwan Semiconductor Manufacturing Co., Samsung (KS) and United Microelectronics.