The Italian government and Intel have chosen Vigasio, in the state of Veneto, as the site of a planned chip factory, according to two sources interviewed by Reuters. The two entities are interested in determining where the plant will be built before today’s general election, in which the far-right party, the Italian Brotherhood, came in the first place due to the turnout. Aides to current leader Mario Draghi will reportedly negotiate with the new government to maintain job coherence and avoid disruptions to the plant construction plan.
Veneto’s selection took place in early September when the parties reached a “comprehensive agreement. Neither side will make any public statements on the matter until after today’s election. Veneto has excellent connections to Germany through Austria, which will allow Intel to shift resources between this location and the two plants it plans to build in Magdeburg, Germany.
The plant will be used for advanced semiconductor packaging and chip assembly. The entire arrangement is expected to cost $5 billion, but the government will contribute some of that money. This will be one of the issues that will have to be approved by the incoming government. The country has also been in discussions with STMicroelectronics, MEMC Electronic Materials, TSMC and Israel’s Gota Semiconductor to set up a plant in the country.
The cost of the plant will come in part from the $88 billion Intel has earmarked to increase its European chip capacity. In the wake of the COVID-19 pandemic, it was found that there was too much reliance on Asian chip producers, who were often severely impacted by the stringent containment brought about by the pandemic prevention measures.
