A deal of this size would secure Italy about 10 percent of
the EUR 80 billion the US company is looking to spend over the next decade in
Europe on cutting-edge manufacturing capacity to help avoid future shortages of
semiconductor chips.
Sources had previously told Reuters that the investment size
was in a EUR 4 billion to EUR 8 billion range.
As part of this plan Germany, the European Union's largest
economy, is in the lead to land Intel's planned European 'megafab' plant,
although France remains in the running, Reuters reported in October.
Intel said it is "having constructive investment
conversations with government leaders in multiple EU countries" but
declined to comment specifically on talks 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 said in a statement.
Chipmakers are scrambling to boost output after explosive
demand for consumer electronics such as smartphones and computers resulting
from the work-from-home trend during the COVID-19 pandemic led.
Meanwhile EU countries, where many jobs still rely on
industries such as automobile manufacturing, are eager to reduce their
dependence on semiconductor supplies from China and the United States after
recent supply chain problems.
The proposed Italian factory would be an advanced packaging
plant using innovative technologies to weave full chips.
Intel and the Italian government of Prime Minister Mario
Draghi are discussing an overall investment of $9 billion over 10 years from
when construction begins, the sources said.
Negotiations are complex and Rome wants Intel to clarify its
plans for Italy before formalising a package of favourable conditions,
especially on jobs and energy costs, they added.
If Rome and Intel clinch a deal, they will then proceed with
the choice of a site for the plant, the sources said.
However its Chief Executive Pat Gelsinger earlier this month
said he hoped to announce the locations of new chip plants in the United States
and Europe early next year.
In April, the Italian government used anti-takeover
legislation to block a planned sale of a controlling stake in a local
semiconductor equipment maker to China's Shenzhen Invenland Holdings. © Reuters
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