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, two people familiar with the matter said.
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 the time, Intel announced that it would invest about $88 billion to expand production capacity in Europe. Currently, Intel is working to reduce its dependence on Asian chip imports and ease supply shortages.
Italy is pushing for a deal with Intel to build a factory by the end of August, two people familiar with the matter said. Earlier, it was reported that Italy plans to provide up to 40% of the total investment amount for Intel's construction of factories. Intel initially plans to invest about $5 billion, but will invest further over time.
The total size of Intel's investment, and how Italy will finance Intel, is unknown.
In this regard, both Italy and Intel declined to comment.
People familiar with the matter also said that Intel and Italy have basically locked the location of the factory in two regions of Italy, Piedmont and Veneto. However, Intel has yet to make a final decision. In addition, Intel considered Lombardy, Apulia and Sicily.
In February this year, the European Commission announced the highly concerned EU "Chip Act", which plans 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 a goal of 2030 Previously, the EU chip global production capacity was increased from 10% to 20%.
In order to win the EU's "Chip Act" subsidy, Intel announced in March 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. The first phase of investment includes Germany investing 170 euros to build a large-scale advanced process semiconductor wafer fab, France to build a R&D and design center, and Ireland, Italy, Poland and Spain to invest in R&D, manufacturing and foundry services.
So far, Italy has decided to allocate 4.15 billion euros by 2030 to attract chipmakers to build factories and invest in new technologies. In addition to Intel, Italy is in talks with STMicroelectronics, MEMC Electronic Materials, TSMC and Tower Semiconductor.
Last month, STMicroelectronics signed a deal with GF to build a $5.7 billion chip factory in France.