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Intel has ruled out putting a huge new computer chip plant in Britain because of Brexit, it was revealed today.

The head of the US firm, Pat Gelsinger, said it would have considered the UK but was now looking at 'getting support from the EU' for sites.

The news will be seized on by Remain campaigners, although Brexiteers will point to other investment that has gone ahead in the wake of the split from Brussels. 

Intel is keen to boost its output in Europe after the post-Covid recovery sparked a global chip shortage, affecting supply of cars and other products.

The company is pumping up to $95billion - £70billion - into opening and upgrading plants in Europe over the next decade. 

Intel chief Pat Gelsinger said it would have considered the UK but was now looking at 'getting support from the EU' for the investment

The company is pumping up to $95billion - £70billion - into opening and upgrading plants in Europe over the next decade

Mr Gelsinger told the BBC that previously the UK was 'a site that we would have considered'.

'Post-Brexit... we're looking at EU countries and getting support from the EU,' he said.

'I have no idea whether we would have had a superior site from the UK,' he said. 'But we now have about 70 proposals for sites across Europe from maybe 10 different countries.

'We're hopeful that we'll get to agreement on a site, as well as support from the EU... before the end of this year.'

Mr Gelsinger also warned that the shortages of chips is set to continue into Christmas.

'There is some possibility that there may be a few IOUs under the Christmas trees around the world this year,' he said.

'Just everything is short right now. And even as I and my peers in the industry are working like crazy to catch up, it's going to be a while.'

Mr Gelsinger predicted the situation would 'incrementally' improve next year but it could be 2023 before things fully stabilise.