Intel, Italian Government Near $5B Deal For Chip Factory: Report

In addition to Italy, Intel is looking to expand its manufacturing footprint in Germany, Ireland, Poland, and Spain over the next decade with the construction of factories.

A rendering of a planned Intel plant in Europe.

Four months after Intel Corp. declared plans to invest 80 billion euros ($82 billion) in the semiconductor supply chain across the European Union (EU), Italy is close to inking a $5 billion deal with the chip maker giant to build a semiconductor assembly plant in the country, according to Reuters.

The investment in Italy by Intel is part of the Santa Clara, Calif.-based company’s broader plan to trim its reliance on Asian chip imports and alleviate the global supply shortage crunch.

In addition to Italy, Intel is looking to expand its manufacturing footprint in Germany, Ireland, Poland, and Spain over the next decade with the construction of factories.

Two sources who declined to be identified told Reuters, who first reported the news, that Italian Prime Minister Mario Draghi’s administration was working on an agreement to be signed by August 31, weeks before the national election slated for Sept. 25.

The sources up to 40 percent of Intel‘s investment in Italy, which is expected to increase from the initial $5 billion.

Draghi‘s office could not be reached for comment.

An Intel spokesman referred CRN to a press release issued in March on the topic.

At the time, Intel said the factory would create 1,500 Intel jobs plus an additional 3,500 jobs across suppliers and partners, with operations expected to start between 2025 and 2027. Intel and Italy aim to make this facility a first of its kind in the EU with new and innovative technologies.

“Our planned investments are a major step both for Intel and for Europe,” said CEO Pat Gelsinger in a statement. “The EU Chips Act will empower private companies and governments to work together to drastically advance Europe’s position in the semiconductor sector. This broad initiative will boost Europe’s R&D innovation and bring leading-edge manufacturing to the region for the benefit of our customers and partners around the world.”