Intel: Deal to build a chip factory in Italy nearing completion

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Intel and Italy are close to finalizing a deal to build a large semiconductor fab in the north of the country, Reuters reports. Chips are to be assembled there. The investment will initially amount to 5 billion US dollars.

Crisps are to be packed in northern Italy

This information comes from a report by Reuters on Thursday, which relies on two sources said to be aware of the negotiations. However, this has not yet been officially confirmed. The Piedmont and Veneto regions are being traded as possible locations for the Intel factory. It is said to be an “advanced semiconductor packaging and assembly plant”. According to this, raw chips are not manufactured there, but simply assembled into the end product.

It is not the first time that there have been reports in this direction. Similar intentions have already been written about several times. Last year there was talk of a $9 billion factory. Since Italy itself wants to spend more than 4 billion euros on semiconductor projects by 2030, this calculation could still add up. In March, Reuters wrote that Italy would contribute up to 40 percent of Intel's investment. The 5 billion US dollars are just the beginning.

Location Germany already secured

As part of the EU Chip Act, which is intended to support semiconductor production in the EU with more than 43 billion euros by 2030, Intel is also building a factory in Germany. This has already been officially confirmed: Construction work near Magdeburg in Saxony-Anhalt is scheduled to begin in the first half of 2023. Intel is even investing 17 billion euros here.

Massive investments in Europe

Too Intel is expanding strongly in other countries. In Ireland, the Leixlip site will receive a cash injection of up to EUR 12 billion and will double the site's capacity. The Intel 4 stage is next on the books here on a large scale. Intel is currently expanding capacity in Ireland, and the total volume that Intel will ultimately invest in Ireland will be over 30 billion euros.

But also France, Italy, Spain and Poland are set to receive part of Intel's €33 billion investment. Research and development are largely concentrated in France, while packaging and design are to be brought back into focus in Europe.