U.S. semiconductor company Intel is discussing investments with Italy to build a high-tech semiconductor packaging plant worth up to 8 billion euros, Reuters reported on the 23rd (local time), citing two sources.
This amount amounts to 10% of Intel’s announcement that it will invest 80 billion euros in Europe over the next decade.
According to sources, the Italian government, led by Intel and Prime Minister Mario Draghi, is discussing investing 8 billion euros for 10 years when the construction of the plant begins. Earlier, Poland was also known to be interested in attracting packaging plants, but Italy is believed to have gained an advantage.
Italy is said to want Intel to clarify its plan for Italy before formalizing favorable conditions for jobs and energy costs. It is estimated that more than 1,000 people can be hired directly if a factory is built. If Italy and Intel conclude negotiations, the factory site will be selected, sources said.
Intel CEO Pat Gelsinger said earlier this month that he wants to announce the location of new semiconductor plants in the U.S. and Europe early next year. Intel has a plan to set up high-tech factories in Europe to prevent future semiconductor shortages, and CEO Gelsinger said in September that he would build mega factories and packaging facilities to take charge of semiconductor production. With Germany ahead in attracting Intel’s mega factory, France is also believed to be competing.
Intel said, “We are having constructive investment talks with government leaders in various European Union countries.” However, Reuters reported that it did not specifically comment on Italian officials and conversations.
Intel also said, “We are encouraged by the EU’s digital agenda and many possibilities to support the ambition to produce 20% of the world’s semiconductor production by 2030,” adding, “Negotiations are currently underway and confidential, but we plan to make an announcement as soon as possible.”