According to insiders, Italy is close to a deal with the American company Intel to build a large semiconductor factory. The US chipmaker’s initial investment in Italy will be $5 billion, according to two people familiar with the matter. The government of outgoing Prime Minister Mario Draghi is working on an agreement by the end of August, ahead of snap elections scheduled for September 25.
The locations Rome is currently considering for the large-scale project are the northern Italian regions of Piemonte and Veneto. Draghi’s office and Intel declined to comment.
In March, sources told Reuters that Rome was willing to fund up to 40 percent of Intel’s total investment in Italy, which would be increased over time from the original $5 billion. However, the final size of the investment and how Italy will pay its share are not yet clear. Rom is also in talks with chip manufacturers STMicroelectronics, MEMC Electronic Materials Inc and TSMC and Tower Semiconductor, which has since been acquired by Intel.
The project in Italy is part of a broader plan by the US chipmaker to invest $88 billion to build manufacturing capacity in Europe to reduce reliance on Asian suppliers. The European Commission has set aside €15 billion by 2030 for public and private semiconductor projects under the so-called Chips Act, and the government in Rome has set aside €4.15 billion for the period up to 2030.
Source: Krone
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