Rome Italy, according to insiders, is on the verge of a deal with the US corporation Intel on the construction of a large semiconductor factory. The US chipmaker’s initial investment in Italy amounts to five billion dollars, two people familiar with the matter told Reuters on Thursday. The government of outgoing Prime Minister Mario Draghi is working on an agreement by the end of August, before the early elections scheduled for September 25.
The locations currently being considered by Rome for the large-scale project are the northern Italian regions of Piedmont and Veneto. The office of Draghi and Intel declined to comment.
In March, Reuters had learned from circles that Rome was ready to finance up to 40 percent of Intel’s total investments in Italy, which were to be increased over time from the original five billion dollars. However, the final size of the investment and the way Italy will pay its share are not yet clear. Rom is also in talks with chip manufacturers STMicroelectronics, MEMC Electronic Materials Inc and TSMC and Tower Semiconductor, which has since been acquired by Intel.
The project in Italy is part of a broader plan by the US chipmaker to invest $ 88 billion in building manufacturing capacity in Europe to reduce its dependence on Asian suppliers. The European Commission has earmarked 15 billion euros for public and private semiconductor projects by 2030 under the so-called Chips Act. The government in Rome has planned 4.15 billion euros for the period up to 2030.