Intel rumored to invest $5 billion to build plant in Italy

Intel will build an advanced semiconductor packaging and assembly plant in Italy with an initial investment of about $5 billion.

Reuters reported that Intel will build an advanced semiconductor packaging and assembly plant in Italy with an initial investment of about $5 billion, according to two people familiar with the matter.

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The report pointed out that the investment in Italy is part of Intel's European investment plan announced at the beginning of the year. At that time, Intel announced that it would invest approximately US$88 billion to expand production capacity in Europe. Currently, Intel is working hard to reduce its dependence on Asian chip imports and ease supply shortages.


Italy is seeking to reach an agreement with Intel to build the factory by the end of August, two people familiar with the matter said. Previously, it was reported that Italy planned to provide up to 40% of the total investment for Intel's plant construction. Intel initially plans to invest about $5 billion, but will invest further over time.


As for the total size of Intel's investment and how Italy will provide funding for Intel, it is still unknown.


Both Italy and Intel declined to comment.


People familiar with the matter also said that Intel and Italy have basically locked in two regions in Italy, namely Piedmont and Veneto. However, Intel has not yet made a final decision. In addition, Intel considered the Lombardy, Apulia and Sicily regions.
In February of this year, the European Commission announced the much-concerned EU "Chip Act", planning to invest 43 billion euros (about 49 billion U.S. dollars) in a new generation of chip factories, with the aim of increasing the EU's global chip production market share, with the goal of 2030 Previously, the EU's global chip production capacity was increased from 10% to 20%.


In order to fight for the EU's "Chip Act" subsidies, in March Intel announced that it will invest up to 80 billion euros in the EU region within ten years for all aspects of the semiconductor ecosystem, covering chip research and development, manufacturing and advanced packaging technology. In the first phase of investment, Germany invested 170 euros to establish a large-scale advanced process semiconductor fab, France built an R&D and design center, and Ireland, Italy, Poland and Spain invested in R&D, manufacturing and foundry services.


So far, Italy has decided to allocate 4.15 billion euros before 2030 to attract chip manufacturers to build factories and invest in new technologies. In addition to Intel, Italy is also in talks with STMicroelectronics, MEMC Electronic Materials, TSMC and Tower Semiconductor.


Last month, STMicroelectronics signed a deal with GlobalFoundries to build a $5.7 billion chip factory in France.

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