Italy will provide Intel with funding to build chip packaging and assembly plants in the country

Two people familiar with the matter said that Italy is preparing to contribute as much as 40% of Intel's total investment to build a chip packaging and assembly plant in the country. The plan shows that some European member states are willing to offer competitive terms to lure Intel and other chipmakers to invest in regions where labor and production costs are higher than in Asia. Intel last week outlined preliminary details of its $88 billion European investment plan.

The plan, with an initial expenditure of 33 billion euros ($36.4 billion), centers on a new giant chip-making complex in Germany, as well as a potential investment of up to 4.5 billion euros in an advanced packaging and assembly base in Italy. Expected to start operations between 2025 and 2027, the Italian factory will create around 1,500 direct jobs and an additional 3,500 jobs for suppliers and partners.

Offering 40 percent of Intel's total capital spending in Italy would make it competitive with similar investments Intel is making in other regions such as Asia, two of the sources said.

Post a Comment