Italy in talks with Intel over multibillion-dollar chip plant

i24NEWS

3 min read
Intel Senior Vice President Gregory Bryant displays an Ice Lake chip during an Intel press event at the Mandalay Bay Convention Center in Las Vegas, Nevada, January 7, 2019.
DAVID BECKER / GETTY IMAGES NORTH AMERICA / GETTY IMAGES VIA AFPIntel Senior Vice President Gregory Bryant displays an Ice Lake chip during an Intel press event at the Mandalay Bay Convention Center in Las Vegas, Nevada, January 7, 2019.

Discussions about a potential investment include preliminary estimates of over $4.7 billion

Rome is drawing up an offer with efforts to convince Intel to invest billions of dollars into an advanced chip-making plant in Italy. 

This development comes as Germany emerged as the frontrunner to acquire an even larger mega-factory from the US technology company, Reuters reported.

The plants would be part of an initiative by Intel to produce cutting-edge manufacturing capacity in Europe as a way to avoid future supply shortages of which the automotive industry is currently experiencing.

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Discussions between the Italian government and the US group about a potential investment include preliminary estimates of over $4.7 billion, according to Reuters

Depending on Intel’s plans - which they declined to identify due to confidentiality - the total could reach over $8 billion.

Sources indicate that Rome is prepared to fund the overall investment with public money and offer terms on labor and energy cost to Intel, Reuters reported.

The factory would create more than 1,000 direct jobs in Italy. 

A source told Reuters, “The government is preparing a very detailed offer with the aim of clinching a deal by the end of the year.”

“Discussions with Intel are at an advancing stage...if the government works hard on this it has a good chance of bringing the plant to Italy.”

Intel declined to comment on its plans. 

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According to Reuters, Intel’s biggest project in Europe is a mega-factory, of which Dresden in eastern Germany sits as the leading candidate site. 

Final decisions have yet to be made for either site, sources disclosed, and plans could change soon.