Intel as well as Italy are accelerating talks on investments that could be worth approximately EUR 8.4 billion (roughly around Rs. 68,120 crore) for the construction of an advanced semiconductor packaging plant.
A deal of this magnitude could ensure Italy approximately 10% of EUR 80 billion (roughly about Rs. 6,80,920 crore) the US company intends to invest in the coming decade in Europe for cutting-edge manufacturing capabilities to prevent the possibility of a shortage of semiconductor chips.
Intel has said that it was “having constructive investment conversations with government leaders in multiple EU countries” however, it declined to talk about specific discussions that it has had 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 stated in its statement.
Chipmakers are trying to increase production following the exploding growth in demand for electronic devices for consumers, such as smartphones and computers that resulted from the trend of working from home during the COVID-19 epidemic that caused.
Sources previously informed that the size of the investment was EUR 4 . billion (roughly the equivalent of Rs. 34,045 crore) to EUR 8 billion (roughly around Rs. 68,120 crore) range.
As part of this strategy Germany as the European Union’s biggest economy, is in the race to get Intel’s European megafab plant However, France remains in the running.
In the meantime, EU nations, which have a lot of jobs depend on industries like automobile manufacturing, are looking to decrease their dependence on semiconductors coming from China or in the United States after recent supply chain issues.
The planned Italian manufacturing facility would be an advanced manufacturing facility employing cutting-edge technologies to create whole chips.
Intel as well as the Italian government of Premier Mario Draghi are discussing an total budget of around $9 billion (roughly the equivalent of Rs. 67,640 crore) in 10 years starting when construction starts, sources said.
Negotiations are tense and Rome is seeking Intel to define its strategies for Italy before formally negotiating a package of favorable terms, especially regarding energy and jobs They added.
In the event that Rome and Intel agree to a deal and then move forward in deciding on an area where the factory will be built, sources claimed.
However, the company’s CEO Pat Gelsinger earlier this month stated that he was planning to reveal the locations of new chip factories within Europe, the United States and Europe early next year.
In April, the Italian government enacted anti-takeover laws to stop the transfer of a majority part of the local maker of semiconductor equipment in China to Shenzhen Invenland Holdings.
ABOUT AUTHOR
Barry is a lover of everything technology and finance (FinTech). Figuring out how the software works and creating content to shed more light on the value it offers users is his favorite pastime. When not evaluating apps or programs, he's busy trying out new healthy recipes, doing yoga, meditating, or taking nature walks with his little one.
