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Intel's European chip factory may settle in Italy: negotiations are now in the late stages

Feb 02 68
Three people familiar with the matter said today that the Italian government is drafting an offer to try to persuade Intel to invest billions of euros in Italy to build a semiconductor factory. Intel CEO Pat Gelsinger (Pat Gelsinger) said at the end of April this year that Intel is seeking 8 billion euros (about 9.7 billion US dollars) in public subsidies to build an advanced semiconductor manufacturing plant in Europe.

According to people familiar with the negotiations, Italy has started negotiations with Intel on potential investments. According to preliminary estimates, the value of this investment will exceed 4 billion euros (approximately 4.7 billion US dollars). Another person familiar with the matter said that depending on Intel's plan, this investment can reach up to about 8 billion euros.

People familiar with the matter also said that Italy is ready to use public funds to provide part of the overall investment and provide preferential terms to Intel, including concessions in labor and energy costs. It is estimated that the factory can create more than 1,000 direct employment opportunities for Italy.

Another person familiar with the matter said: "The Italian government is preparing a very detailed quotation, and the goal is to reach an agreement by the end of the year. Negotiations with Intel have entered an advanced stage and no agreement has been reached yet; but if the government makes more efforts, It is very possible to move the factory to Italy."

As for the location of the factory, people familiar with the matter said that potential locations include Mirafiori in Turin and Catania in Sicily. The former is the Italian headquarters of the automaker Stellatis, and the latter is The French-Italian chip manufacturer STMicroelectronics (the home of STMicroElectronics).

In this regard, Intel declined to comment.

In addition to this semiconductor factory, Intel's largest project in Europe is another giant factory. People familiar with the matter said that Dresden, Germany, is currently in an advantageous position and is expected to win the project.

But at present, Intel has not yet made a decision. In addition to Germany, France is also a strong competitor for the giant factory. For the chip factory that Italy is competing for, Poland is also a strong opponent.

People familiar with the matter said that the Italian factory will be an "advanced packaging" factory, using new technology to assemble parts produced by Intel and other chip manufacturers into complete chips. Intel is using this technology to attract new customers, such as Amazon's cloud computing department.

Intel CEO Kilsinger said last month that Intel will announce the location of these two European factories before the end of the year. In addition, Intel also hopes to invest 80 billion euros in continental Europe in the next ten years.

In addition to European factories, Kilsinger also announced the launch of IDM2.0 strategy in March of this year. It plans to spend up to 20 billion U.S. dollars to build two factories in Arizona, USA. leading position.

In the field of semiconductor chips, Intel has dominated the industry for decades, but in recent years, due to the continuous delay of new process research and development, it has gradually lost its advantage in the field of chip manufacturing.