Italy signs mammoth deal with Intel for chip factory  

To face the crisis

Italy and Intel are close to finalizing a mammoth $5 billion deal to build a state-of-the-art chip manufacturing plant. As Reuters reveals , Intel’s investment in the country is part of a larger plan by the American manufacturer to invest $88 billion in Europe for factories. For its part, Europe is trying to reduce its reliance on chip imports from Asia and combat the supply chain crisis that has hit the European automotive sector hard.

Reuters’ sources say the government of outgoing Prime Minister Mario Draghi is trying to finalize the deal by the end of August, before national elections on September 25. Draghi’s press office, as well as Intel, declined to comment on the report.

The two sides have settled on two Italian cities as candidates to build the plant, one of which is in the north of the Piedmont and Veneto regions. In fact, the $5 billion sounds like an initial amount, with the final amount of the investment remaining unknown, just as the financing from the Italian side remains unknown.

Rome already has $4.15 billion available until 2030 to attract investment from chipmakers for innovative technologies.

Recall that last month, STMicroelectronics signed a $5.7 billion deal with Global Foundries to build a chip factory in France.