A deal of this size would secure Italy about 10% of the 80 billion euros the US company is looking to spend on state-of-the-art manufacturing capacity in Europe over the next decade to help avoid a future shortage of semiconductor chips.
Intel and Italy are intensifying talks on an investment of about 8 billion euros ($9 billion) to build an advanced semiconductor packaging plant, two sources familiar with the matter said. Reuters,
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A deal of this size would secure Italy about 10% of the 80 billion euros the US company is looking to spend on state-of-the-art manufacturing capacity in Europe over the next decade to help avoid a future shortage of semiconductor chips.
sources had earlier told Reuters That the size of the investment was in the range of 4 billion to 8 billion euros.
As part of this plan, Germany, the EU’s largest economy, is in the lead to take down Intel Corp’s planned European ‘MegaFab’ plant, although France is still underway, Reuters Reported in October.
Read also | Intel to invest up to 80 billion euros to increase EU chip capacity: CEO
Intel said it is having “constructive investment talks with government leaders in several EU countries” but declined to comment specifically on talks with Italian officials.
“We are encouraged by the many possibilities to support the EU’s digital agenda and 2030 semiconductor ambitions,” the company said in a statement. While current negotiations are ongoing and confidential, we plan to make an announcement as soon as possible. are.”
Chipmakers are scrambling to boost production following the explosive demand for consumer electronics such as smartphones and computers as a result of the trend to work from home during the COVID-19 pandemic.
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Meanwhile EU countries, where many jobs still depend on industries such as automobile manufacturing, are eager to reduce their reliance on semiconductor supplies from China and the United States following recent supply chain problems.
The proposed Italian factory will be an advanced packaging plant using innovative technologies for weaving complete chips.
Intel and Prime Minister Mario Draghi’s Italian government are discussing an overall investment of $9 billion over 10 years from the start of construction, sources said.
Negotiations are complicated and Rome wants Intel to clarify its plans for Italy, especially on jobs and energy costs, before formalizing a favorable conditions package.
Read also | Intel reiterates chip supply shortage could last for many years
If Rome and Intel strike a deal, they will go ahead with the choice of a site for the plant, the sources said.
Although its chief executive, Pat Gelsinger, said earlier this month he expected to announce the locations of new chip plants in the United States and Europe early next year.
In April, the Italian government used anti-acquisition legislation to block the planned sale of a controlling stake in a local semiconductor equipment maker to China’s Shenzhen Invenland Holdings Co., Ltd.
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