Intel, Italy say it’s close to reaching a $5 billion deal for chip factory: Details

Italy is close to reaching an initial $5 billion (about Rs 39,600) deal with Intel to build an advanced semiconductor assembly and packaging plant in the country, two sources told Reuters on Monday. Five. Intel’s investment in Italy is part of a broader plan announced by the US chipmaker earlier this year to invest $88 billion (about 6,97,500 crore) in capacity building across Europe Europe, which is working to cut its reliance on Asian chip imports and ease supply shortages, has limited output in the region’s strategic auto sector.

Asking not to be named due to the sensitivity of the matter, sources say the government of outgoing Prime Minister Mario Draghi is working to strike a deal by the end of August, ahead of snap national elections. scheduled for September 25.

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

Draghi and Intel’s offices both declined to comment.

The factory will use new technology to weave together fully French fries out of bricks.

Sources said Intel and the government have listed possible locations in two regions of Italy, with one of them adding that they are located in the northern regions of Piedmont and Veneto.

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

The total size of Intel’s investment and how it intends to fund its shares is unknown at this time.

Under the so-called CHIPS Act aimed at funding innovative semiconductor facilities, the European Commission said earlier this year that it has earmarked 15 billion euros in additional public and private sector investment by 2030. over 30 billion euros of public investment has been planned from NextGenerationEU, Horizon Europe and the country. budget.

So far, Rome has spent EUR 4.15 billion (approximately Rs 33,539) until 2030 to attract chipmakers and invest in new industrial applications of innovative technologies.

The government is also negotiating with Franco-Italian STMicroelectronics, Taiwanese chipmakers MEMC Electronic Materials and TSMCand Israel’s Tower Semiconductor, which Intel bought earlier this year.

Last month, STMicroelectronics signed an agreement with GlobalFoundries to build a chip factory worth $5.7 billion (about Rs 45,200) in France.

© Thomson Reuters 2022

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