August 15, 2022
Intel, Italy asked to sign  billion deal for chip factory: Details

Italy is close to inking an initially $5 billion (about Rs 39,600 crore) deal with Intel to build an advanced semiconductor packaging and assembly plant in the country, two sources told Reuters on Thursday. Intel’s investment in Italy is part of a broader plan announced by the US chipmaker earlier this year to invest $88 billion (roughly Rs. and is striving to reduce its reliance on ease. Supply constraints that have curtailed production in the region’s strategic car sector.

Refusing to be named due to the sensitivity of the matter, sources said the government of outgoing Prime Minister Mario Draghi was working to strike a deal by the end of August, ahead of a snap national election scheduled for September 25.

Sources have previously told Reuters that Rome is set to fund up to 40 percent of Intel’s total investment in Italy, which is expected to grow from an initial $5 billion (about Rs 39,600 crore) over time.

Draghi’s office and Intel both declined to comment.

The factory will use new technologies to weave the chips together completely out of the tiles.

Intel and the government have shortlisted potential sites in two Italian regions, the sources said, with one of them located in the northern regions of Piedmont and Veneto.

Both sources said a final decision on where to build the facility is yet to be taken. The Lombardy, Apulia and Sicily regions were also initially considered.

The total size of Intel’s investment and how Italy plans to fund its share are not yet clear.

The European Commission said earlier this year that it had made available 15 billion euros in additional public and private investment by 2030, aimed at funding innovative semiconductor facilities under the so-called CHIPS Act. This is on top of an already planned 30 billion euro public investment from NextGenerationEU, Horizon Europe and the national budget.

Rome has so far set aside EUR 4.15 billion (about Rs 33,539 crore) by 2030 to attract chip makers and invest in new industrial applications of innovative technologies.

The government is also in talks with French-Italian STMicroelectronics, Taiwanese chipmakers MEMC Electronic Materials and TSMC, and Israeli Tower Semiconductor, which Intel bought earlier this year.

STMicroelectronics last month signed a deal with GlobalFoundries to build a $5.7 billion (about Rs 45,200 crore) chip factory in France.

© Thomson Reuters 2022

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