Aug 4, 2022
Italy is close to clinching a deal initially worth $5 billion with Intel to build an advanced semiconductor packaging and assembly plant in the country, two sources briefed on discussions told Reuters on Thursday.
Asking not to be named due to the sensitivity of the matter, the sources said the government of outgoing Prime Minister Mario Draghi was working to have an agreement in place by the end of August, ahead of a snap national election scheduled on Sept. 25.
Sources have previously told Reuters that Rome is ready to fund as much as 40% of Intel’s total investment in Italy, which is expected to rise over time from the initial $5 billion.
Draghi’s office and Intel both declined to comment.
Under the so-called Chips Act aimed at funding innovative semiconductor facilities, the European Commission early this year said it had made available 15 billion euros in additional public and private investment by 2030.
This is on top of 30 billion euros of public investments already planned from NextGenerationEU, Horizon Europe and national budgets. Rome so far has set aside 4.15 billion euros until 2030 to attract chipmakers and invest in new industrial applications of innovative technologies.
The government is also in talks with French-Italian STMicroelectronics, Taiwan chipmakers MEMC Electronic Materials Inc and TSMC, and Israeli Tower Semiconductor, which Intel bought earlier this year.
STMicroelectronics last month signed a pact with GlobalFoundries to build a $5.7 billion chip factory in France.
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