Intel and the Italian government are accelerating talks to build an advanced semiconductor encapsulation plant. Reuters reports, citing two sources close to those concerned. An agreement of this size would ensure Italy about 10% of the 80 billion euros that the US company intends to spend in Europe to create a state-of-the-art production facilities that will allow to avoid future shortages of semiconductor chips.
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Intel said it “is conducting constructive talks with heads of government in multiple EU countries to plan future investments,” but declined to comment specifically on contacts with Italian officials; what is certain is that CEO Pat Gelsinger met Draghi last July. “We are encouraged by the many possibilities to support the EU’s digital agenda and the development of the semiconductor industry for 2030. Negotiations are still ongoing and confidential, but we intend to make an announcement as soon as possible,” he said. the Santa Clara company stated in a note. Besides Italy, among the candidate countries for investments there would be Germany and France.
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Chip makers are struggling to increase availability and cope with the ever-growing demand generated by the increase in smart working, with the consequent growth in the sale of smartphones and computers. At the same time, EU countries are aiming to reduce their reliance on semiconductor supplies from China and the US following recent supply chain problems. The Italian factory would not be the real chip factory (which seems to be built in Germany), but an encapsulation plant that uses innovative technologies to make complete chips. Intel and Prime Minister Mario Draghi’s government would be discussing an investment of around 8 billion euros, spread over ten years.
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But the negotiations are complex and, before establishing an incentive package, Rome wants Intel to clarify its plans for Italy, especially on jobs and energy costs. The direct jobs created would be a thousand, to which should be added those created by the related industries. There is already talk of two possible areas for the construction of the factory: Catania or the Mirafiori area in Turin. A few weeks ago Gelsinger said he plans to announce the locations of new chip plants in the US and Europe early next year.
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