As early as mid-March, Intel Corporation announced its intention to set up companies and research centers in Europe and promised to spend up to 80 billion euros over the next ten years for such purposes. Italy was a place for building a chip testing and packaging company in these plans, now local authorities will choose the area where it will be built by the end of August.
As explained Reuters According to people familiar with the matter, the schedule will be determined by the September 25 election and the government of outgoing Prime Minister Mario Draghi is expected to reach an agreement with Intel by the end of August. The construction budget will reach $5 billion according to the most conservative estimates, and the Italian authorities are ready to subsidize up to 40% of that amount. The regions of Piedmont with the administrative center in Turin and Veneto with the center in Venice are now the geographical favourites. The former is the second largest territory in Italy and the center of a large industrial cluster serving the interests of the automotive industry. In the first phase, even the possibility of setting up a company on the island of Sicily was discussed.
The Italian authorities have so far reserved more than €4 billion out of more than €45 billion earmarked to fund the European semiconductor industry before the end of this decade. The government is also reportedly in talks with Franco-Italian company STMicroelectronics, which last month agreed to set up a joint venture with GlobalFoundries in France, as well as Taiwanese companies TSMC and MEMC Electronic Materials, and the recently acquired Israel Tower Semiconductors by Intel.