Intel, Italy Said to Intensify Talks Over EUR 8-Billion Chip Factory

Intel and Italy are intensifying talks over investments expected to be worth around EUR 8 billion (roughly Rs. 68,120 crore) to build an advanced semiconductor packaging plant, two sources close to the matter told Reuters.

A deal of this size would secure Italy about 10 percent of the EUR 80 billion (roughly Rs. 6,80,920 crore) the US company is looking to spend over the next decade in Europe on cutting-edge manufacturing capacity to help avoid future shortages of semiconductor chips.

Sources had previously told Reuters that the investment size was in a EUR 4 billion (roughly Rs. 34,045 crore) to EUR 8 billion (roughly Rs. 68,120 crore) range.

As part of this plan Germany, the European Union’s largest economy, is in the lead to land Intel’s planned European ‘megafab’ plant, although France remains in the running, Reuters reported in October.

Intel said it is “having constructive investment conversations with government leaders in multiple EU countries” but declined to comment specifically on talks with Italian officials.

“We are encouraged by the many possibilities to support the EU’s digital agenda and 2030 semiconductor ambitions. While current negotiations are ongoing and confidential, we plan to make an announcement as soon as possible,” the company said in a statement.

Chipmakers are scrambling to boost output after explosive demand for consumer electronics such as smartphones and computers resulting from the work-from-home trend during the COVID-19 pandemic led.

Meanwhile EU countries, where many jobs still rely on industries such as automobile manufacturing, are eager to reduce their dependence on semiconductor supplies from China and the United States after recent supply chain problems.

The proposed Italian factory would be an advanced packaging plant using innovative technologies to weave full chips.

Intel and the Italian government of Prime Minister Mario Draghi are discussing an overall investment of $9 billion (roughly Rs. 67,640 crore) over 10 years from when construction begins, the sources said.

Negotiations are complex and Rome wants Intel to clarify its plans for Italy before formalising a package of favourable conditions, especially on jobs and energy costs, they added.

If Rome and Intel clinch a deal, they will then proceed with the choice of a site for the plant, the sources said.

However its Chief Executive Pat Gelsinger earlier this month said he hoped to announce the locations of new chip plants in the United States and Europe early next year.

In April, the Italian government used anti-takeover legislation to block a planned sale of a controlling stake in a local semiconductor equipment maker to China’s Shenzhen Invenland Holdings.

© Thomson Reuters 2021


Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Technology News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More