Intel & Italy pick Veneto region for new multibillion-euro chip factory

By Rashi Thakkar  | Date: September 26, 2022

Intel & Italy pick Veneto region for new multibillion-euro chip factory

The town of Vigasio located in the northeastern Veneto region has reportedly been chosen as the preferred location for a brand-new multibillion-euro chip facility in Italy by Mario Draghis departing government and Intel Corporation.

The U.S. chipmaker's declaration last March that it will spend up to USD 77.5 billion over the following ten years expanding its capacity across Europe is accompanied by Intel's investment in Italy.

Additionally, Intel has stated that the Italian plant would generate 1,500 employment opportunities as well as an additional 3,500 jobs for suppliers and partners, with operations set to begin between 2025 and 2027. Furthermore, the initial investment is likely to be around USD 4.37 billion with further increases anticipated.

It is worth mentioning that the Italian factory would be a cutting-edge semiconductor packaging and assembly facility that will weave complete chips made of tiles using innovative technologies.

According to the sources, the parties had outlined a thorough agreement in early September, while the sources were asked to remain anonymous owing to the sensitivity of the situation. However, no official declaration would be made until the results of the general elections held on Sunday i.e., 25th September are declared.

One of the informants stated that the location is advantageous for several reasons, including its proximity to Germany particularly the city of Magdeburg, where Intel will construct two additional facilities.

Notably, the choice of the site is politically sensitive, and Draghi's close advisors intend to engage in behind-the-scenes negotiations with their potential successors to eliminate any chance of the transaction being contested by Italy's next government.

For those unversed, Rome is all set to fund around 40% of Intel's overall investment in Italy. In addition, Rome is in discussions to intensify domestic chip production with Israeli Tower Semiconductor, which Intel just acquired, Taiwan's MEMC Electronic Materials Inc., French-Italian STMicroelectronics, and French-Italian STMicroelectronics.

Source Credit: https://www.reuters.com/technology/exclusive-italy-intel-pick-veneto-preferred-region-new-chip-plant-sources-2022-09-25/

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Rashi Thakkar     ibmag.com

Rashi Thakkar

Rashi started her journey in content when she was completing her MBA. Since then, she has helped well-known start-ups and businesses boost their online presence. Currently Rashi pens downs insightful articles for IBMag and various other websites, covering an array of ...

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