Intel and Italy are planning to invest $9 billion in a project to build an advanced semiconductor packaging factory together, Reuters reports.
Intel and Italy to invest in $9 billion in a semiconductor factory
With this kind of investment deal, the Italian government would be getting around 10% of Intel’s $80 billion investment over the next decade in European plants to avoid shortages of semiconductors.
Intel stated that the company is “having constructive investment conversations with government leaders in multiple EU countries.” But did not give any details about the possible deal with Italy.
The company officials stated that: “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.”
Because of the global chip shortage caused by the COVID-19, many sectors have been affected negatively. The giants of the semiconductor industry are making huge investments in order to prevent the situation. From car manufacturers to smartphone developers everybody is looking for some solution.
At the same time, EU countries are trying to reduce their dependency on semiconductor products produced in China and the United States after recent supply chain problems.
Intel and the government of Italy are in advanced negotiations over an investment of nearly $9 billion over 10 years. But there are some things to consider for Italy such as jobs and energy costs.