--- title: "Italy is Ready Clinch with Intel a Deal of $5 Billion for Chip Factory" description: "Italy is about to clinch a deal of $5 billion with Intel in order to build an advanced semiconductor packaging and assembly plant within the country." author: "Siddhi Shaw" published: 2022-08-05 canonical: https://www.mindstick.com/news/1830/italy-is-ready-clinch-with-intel-a-deal-of-5-billion-for-chip-factory category: "technology" tags: ["technology", "investment", "factories"] reading_time: 2 minutes --- # Italy is Ready Clinch with Intel a Deal of $5 Billion for Chip Factory **Italy** is about to clinch a deal worth **$5 billion** (roughly Rs. 39,600 crore) with **Intel** in order to build an advanced [semiconductor](https://www.mindstick.com/articles/333879/manufacturing-of-chips-in-the-semiconductor-market) packaging and assembly plant within the country. Intel's investment in Italy is an element of a wider plan which was announced by the **US** chipmaker earlier this year in order to invest **$88 billion** (roughly Rs. 6,97,500 crore) in building capability across **Europe**, that is trying to chop its reliance on **Asian** [chip](https://www.mindstick.com/news/1751/latest-computer-chip-mimics-like-the-human-brain) imports and ease a supply crunch that had curbed output within the region's strategic car sector. ``` HIGHLIGHTS Intel has been in contact with Italy in order to build a factory in the country Europe has been trying to chop its reliance on Asian chip imports Total size of Intel’s investment and plans to fund its share has not been clear yet ``` According to the sources, the government of outgoing **[Prime Minister](https://yourviews.mindstick.com/view/30440/the-race-to-become-britain-s-new-prime-minister) Mario Draghi** was operating to have an agreement in place by the end of **August**, ahead of a snap national election which was scheduled on **September 25**. **Rome** has been prepared to fund around **40 percent** of Intel's total investment in Italy, that is expected to get rise from the initial **$5 (roughly Rs. 39,600 crore) billion**. The total size of Intel's investment and the way Italy would plan to fund its share of it has not been clear yet. Under the so-called **[CHIPS Act](https://www.mindstick.com/news/1805/to-compete-with-china-us-senate-has-passed-the-chips-act-to-boost-the-domestic-chip-manufacturing)** which had been aimed towards funding innovative semiconductor facilities, earlier this year the **European Commission** has mentioned that it had **15 billion euros** available in further [public and private](https://answers.mindstick.com/qa/111746/what-are-the-main-differences-between-public-and-private-schools) investment by **2030**. This has been on the top of **30 billion euros** of public [investments](https://www.mindstick.com/news/2678/5g-services-in-india-to-attract-rs-1-5-lakh-crore-in-investments-in-2023) which were already planned from **NextGenerationEU**, **Horizon Europe** and national budgets. Rome has set aside **EUR 4.15 billion** (roughly Rs. 33,539 crore) till 2030 to draw the attention of the chipmakers and would invest in new industrial [applications](https://www.mindstick.com/articles/12847/how-to-choose-the-right-ethernet-cable-for-industrial-applications) of innovative technologies. The government has been in conversation with the **French-Italian STMicroelectronics**, **Taiwan chipmakers** **MEMC Electronic Materials** and **[TSMC](https://www.mindstick.com/news/465/chipmaker-tsmc-authorizes-2-8-billion-for-capacity-expansion)**, and **Israeli Tower Semiconductor** that [Intel](https://www.mindstick.com/news/1187/alder-lake-12th-generation-intel-announced-evo-platform-update-at-ces-2022) had bought earlier this year. STMicroelectronics last month had signed a pact with **GlobalFoundries** in order to build a **$5.7 billion** (roughly Rs. 45,200 crore) chip factory in **France**. Also Read: [Intel Initiates in Making Chips for Car Companies in Next Few Months!](https://www.mindstick.com/news/420/intel-initiates-in-making-chips-for-car-companies-in-next-few-months) --- Original Source: https://www.mindstick.com/news/1830/italy-is-ready-clinch-with-intel-a-deal-of-5-billion-for-chip-factory Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.