Intel to expand aggressively in Europe and invest 8 billion euros to build packaging plant in Italy

Intel and Italy are stepping up negotiations and are expected to invest about 8 billion euros ($9 billion) to build an advanced semiconductor packaging plant, according to foreign media citing two people familiar with the matter.

Intel plans to invest 80 billion euros in cutting-edge production capacity in Europe over the next decade to help avoid future semiconductor chip shortages. If a deal of this size is reached, the Italian project will account for about 10 per cent of the medium-and long-term investment plan.

According to previous reports, Germany, the largest economy in the European Union, is taking the lead in striving to become the site of Intel's planned "giant factory" in Europe, but France is also fighting for it.

Intel said it was "in a constructive investment dialogue with government leaders from a number of EU countries", but declined to comment specifically on the negotiations with Italian officials.

"We are encouraged by the many possibilities to support the EU digital agenda and semiconductor ambitions for 2030. Although the current negotiations are still ongoing and confidential, we plan to announce the news as soon as possible. "

In the "core shortage" wave brought about by the novel coronavirus epidemic, global chipmakers are racing to increase production, while many countries in the European Union are eager to reduce their dependence on semiconductor supplies from China and the United States after recent supply chain problems.

Intel and Italian Prime Minister Draghi (Mario Draghi) are discussing a $9 billion investment plan to produce an advanced semiconductor packaging plant that could span as long as a decade from the opening date, the source said.

They added that the negotiations were complex and that Italy wanted Intel to clarify its plan for Italy before formalizing a package of advantages, particularly in terms of employment and energy costs. Sources said that if Italy and Intel reach an agreement, they will press ahead with the process of selecting the location of the factory.

Pat Gelsinger, the Italian chief executive, said earlier this month that he hoped to announce the location of new chip plants in the US and Europe early next year.