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| Italy intensifies negotiations with Intel over chip factories |
Reuters reported that Intel and Italy are intensifying talks with a total investment estimated at eight billion euros ($9 billion) to build a state-of-the-art semiconductor plant.
A deal of this magnitude offers Italy a guarantee of 80 billion euros. The American company plans to invest 80 billion euros in advanced manufacturing capabilities in Europe over the next 10 years in order to avoid shortages of semiconductor chips in the future.
The source had previously told Reuters that the investment ranged between 400 and 8 billion euros.
According to an October report by Reuters, Germany, the EU's largest economy, is at the forefront of the plan in building a proposed European plant for Intel, although France is still in the study.
Intel is conducting constructive investment negotiations with heads of government in several EU countries. However, he declined to comment specifically on the meeting with Italian officials.
"We are encouraged by the many opportunities to support the European Union's digital agenda and semiconductor ambitions for 2030," the company said in a statement. While ongoing negotiations are ongoing and confidential, we plan to announce this as soon as possible.
After the trend of working from home during the coronavirus pandemic has increased demand for consumer electronics such as smartphones and computers, chip makers are trying to ramp up production.
At the same time, in the wake of recent supply chain problems, many EU countries, whose jobs still depend on industries such as car manufacturing, are keen to reduce their dependence on semi-finished goods from China and the United States.
Germany tops Intel's list of European factories
The planned Italian plant will be a state-of-the-art packaging plant that will use innovative technology to produce whole chips. The US company and the Italian government are discussing a total investment of US$9 billion within 10 years of starting construction.
The source stressed that the negotiations are complicated and Rome hopes that the company will clarify its plans in Italy. This was before the official confirmation of the preferential package, particularly with regard to labor and energy costs.
When Rome and the company come to an agreement, they will begin to locate the plant. The company's chairman, Pat Gelsinger, said earlier this month that he hopes to announce the location of new chip factories in the US and Europe early next year.
In April, the Italian government passed an anti-takeover law. This is to prevent the planned sale of a majority stake in a local manufacturer of semiconductor equipment to the Chinese company Invenland Holdings.