Intel, Italy Said to Intensify Talks Over EUR 8-Billion Chip Factory

Intel said it is "having constructive investment conversations with government leaders in multiple EU countries."

Intel, Italy Said to Intensify Talks Over EUR 8-Billion Chip Factory

Intel and Italian government are discussing overall investment of $9 billion (roughly Rs. 67,640 crore) 

Highlights
  • Intel said it is having constructive investment conversations
  • Chipmakers are scrambling to boost output
  • Intel and Italy are intensifying talks over investments
Advertisement

Intel and Italy are intensifying talks over investments expected to be worth around EUR 8 billion (roughly Rs. 68,120 crore) to build an advanced semiconductor packaging plant, two sources close to the matter told Reuters.

A deal of this size would secure Italy about 10 percent of the EUR 80 billion (roughly Rs. 6,80,920 crore) the US company is looking to spend over the next decade in Europe on cutting-edge manufacturing capacity to help avoid future shortages of semiconductor chips.

Sources had previously told Reuters that the investment size was in a EUR 4 billion (roughly Rs. 34,045 crore) to EUR 8 billion (roughly Rs. 68,120 crore) range.

As part of this plan Germany, the European Union's largest economy, is in the lead to land Intel's planned European 'megafab' plant, although France remains in the running, Reuters reported in October.

Intel said it is "having constructive investment conversations with government leaders in multiple 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. While current negotiations are ongoing and confidential, we plan to make an announcement as soon as possible," the company said in a statement.

Chipmakers are scrambling to boost output after explosive demand for consumer electronics such as smartphones and computers resulting from the work-from-home trend during the COVID-19 pandemic led.

Meanwhile EU countries, where many jobs still rely on industries such as automobile manufacturing, are eager to reduce their dependence on semiconductor supplies from China and the United States after recent supply chain problems.

The proposed Italian factory would be an advanced packaging plant using innovative technologies to weave full chips.

Intel and the Italian government of Prime Minister Mario Draghi are discussing an overall investment of $9 billion (roughly Rs. 67,640 crore) over 10 years from when construction begins, the sources said.

Negotiations are complex and Rome wants Intel to clarify its plans for Italy before formalising a package of favourable conditions, especially on jobs and energy costs, they added.

If Rome and Intel clinch a deal, they will then proceed with the choice of a site for the plant, the sources said.

However its Chief Executive Pat Gelsinger earlier this month said he hoped to announce the locations of new chip plants in the United States and Europe early next year.

In April, the Italian government used anti-takeover legislation to block a planned sale of a controlling stake in a local semiconductor equipment maker to China's Shenzhen Invenland Holdings.

© Thomson Reuters 2021


What are the best phones of 2021? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Intel
Vivo V23 Series India Launch Confirmed, Tipped to Sport 50-Megapixel Dual Selfie Cameras
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »