Italy wants to spend $4.6 billion to make more chips.
According to a draught decree seen by Reuters on Tuesday, Italy plans to spend more than 4 billion euros ($4.6 billion) until 2030 to make more chips in Italy. The goal is to get more money from tech companies like Intel.
The government wants to get the U.S. group to spend billions of euros on an advanced chipmaking plant in Italy that uses new technologies to make whole chips.
Over the next 10 years, Intel is expected to invest around 8 billion euros ($9 billion) in Italy. Rome will give Intel public money and other favorable terms in exchange for part of that money.
The Italian government is also in talks with STMicroelectronics, MEMC Electronic Materials Inc, and Tower Semiconductor, which is set to be bought by Intel, to make more chips at home.
U.S. group Intel has made some extreme demands, a government source who is part of the talks told Reuters.
To get a deal with Intel, Rome also relies on new European Commission rules on how to earn money for new semiconductor facilities. These rules, called the Chips Act, came out last month.
Brussels has made 15 billion euros in extra public and private investment available by 2030, on top of the 30 billion euros already planned by NextGenerationEU, Horizon Europe, and national budgets. This is in addition to the 30 billion euros of public investments already planned.
Intel said in September that it could spend up to $95 billion in Europe over the next decade.
Under the plan, the U.S. group has chosen the east German city of Magdeburg to be the site of a new multibillion-euro European chip factory. A person familiar with the matter told Reuters on Feb. 26, when the plan was first announced.
Among an 8 billion euro package to help the economy and cut rising energy costs, Italy plans to spend 150 million euros in 2022 and 500 million euros a year from 2023 to 2030.
The Italian government says it will help with “research and development of microprocessor technology and investments in new industrial applications of cutting-edge technologies.”
Rome wants to use the money to help turn old industrial sites into new businesses and help build new plants in Italy.
There has been a huge surge in demand for consumer electronics like smartphones and computers because people started working from home during the COVID-19 pandemic. As a result, chipmakers have been scrambling to make more because of this.
Recent supply chain issues for semiconductors from China and the United States have been reported. As a result, E.U. countries want to cut back on their reliance on these supplies.
