Italy and Intel negotiate 8 billion euro chip factory

Italy is negotiating with Intel to establish a major processor factory. The size of Intel’s investment would be approximately 8 billion euros (9 billion dollars).

The talks between the Italian state and Intel are about the establishment of a large factory for packaging semiconductors in the southern European country, Reuters sources say. It concerns a factory that can produce advanced processors with innovative technology. The investment of 8 billion euros will be ‘spread out’ over several years from the moment that the production of the processors actually starts.

The size of the investment in an Italian factory would secure the country a significant share, ten percent, of the €80 billion that the chip manufacturer has set aside for building chip factories in Europe.

No run race

According to the insiders, the location of the Intel factory in Italy is certainly not yet a race. The Italian government wants to know exactly from Intel what plans it has for the factory. Especially in the area of ​​jobs and energy costs.

Only when Intel can clearly present these plans, the Italian government will give an agreement and will be prepared to give Intel certain advantages. The location of the new chip factory will not be determined until the deal has actually been signed.

Scaling up European production

Intel wants to significantly scale up its own processor production, and perhaps that of others, in Europe in the coming years. With this, the chip manufacturer wants to prevent possible shortages of processors in these regions. Many European countries hope to host these factories. At the moment, Germany, as the largest economy in the EU, is the most favored for a mega Intel factory. France is also a serious candidate.

Intel hopes to announce the final locations of the new factories in Europe in early 2022.