Intel is about to sign a deal with the Italian government to set up a subsidized chip factory in the Mediterranean country.according to Reuters The deal will initially bring an investment of $5 billion from Intel, according to sources. Rome then helps fund development, contributing his 40% of the cost, as well as providing other financial benefits. The acquisition is expected to be announced by the end of August.
Several Italian entities have stepped up to invest in Intel, as have Intel ventures in Germany and France. Initially, the regions of Puglia, Lombardy, Piedmont, Sicily and Veneto were candidates. However, unnamed sources say that his two northern regions of Piedmont and Veneto were victorious.
The purpose of the two Intel factories for Italy is expected to be advanced semiconductor packaging and assembly. Broader plans include a German megasite (two fabs) confirmed by Magdeburg to produce Intel 20A and above chips by 2027, and an R&D (Plateau de Saclay) and semiconductor design hub in France of all kinds. is to establish a facility for
We don’t know exactly how much Intel is prepared to invest overall, or how much support the Italian government will get for the project as a whole. ($4.5 billion). Additionally, over the length of the project, additional funding may come from a combination of the EU Tipping Law Fund and local governments.
Intel is looking to become less dependent on East Asia, mainly for geopolitical reasons. Europe is taking advantage of the EU chip legislation, just like it’s going full speed ahead in the US, now that the US chip and science legislation (and funding plan) has been approved.
There are some interesting aspects to the timing of this investment. Incumbent Prime Minister Mario Draghi is working to sign and seal his deal with Intel by the end of August. With general elections scheduled for September 25, Intel’s investment could help voters look more favorably on existing government parties and their allies.
