Italy is close to signing a deal with Intel to build a $5 billion advanced semiconductor packaging and assembly plant in the country.
As per Reuters, Intel’s investment in Italy is part of a wider plan announced by the US chipmaker earlier this year to invest $88 billion in building capacity across Europe. Intel aims to cut its reliance on Asian chip imports and ease a supply crunch that has curbed output in the region’s strategic car sector.
Sources told the news agency, that the government of outgoing Prime Minister Mario Draghi was working to have an agreement in place by the end of August, ahead of a snap national election scheduled on September 25.
Italy is ready to fund as much as 40 percent of Intel’s total investment in Italy, which is expected to rise over time from the initial $5 billion.
Under the Chips Act aimed at funding innovative semiconductor facilities, the European Commission said it had made available 15 billion euros in additional public and private investment by 2030. This is on top of 30 billion euros of public investments already planned from NextGenerationEU, Horizon Europe and national budgets.
Rome so far has set aside 4.15 billion euros until 2030 to attract chipmakers and invest in new industrial applications of innovative technologies.
The government is also in talks with French-Italian STMicroelectronics, Taiwan chipmakers MEMC Electronic Materials Inc and TSMC, and Israeli Tower Semiconductor, which Intel bought earlier this year.
