Italy is negotiating with Intel to establish a large factory to manufacture processors, Reuters reports. The size of Intel’s investment is valued at around 8 billion euros ($9 billion).

The talks between the Italian State and Intel concern the establishment of a large factory for packaging semiconductors in the southern European country, insiders told Reuters. Specifically, a factory to produce advanced processors. The 8 billion euro investment will be spread out over several years from the time the production of the processors actually starts.

The size of the investment in an Italian plant would assure the country ten percent of the 80 billion euros the chip manufacturer has set aside for building chip factories in Europe.

Far from done

According to the insiders, the negotiations are everything but a breeze for Intel. The Italian government wants to know exactly what plans Intel has for the plant. Especially in the area of employment and energy costs.

When Intel can clearly present these plans, the Italian government will approve and be willing to give Intel certain advantages. Only when the deal is actually signed will the chip factory’s location be made known.

Scaling up European production

Intel wants to significantly scale up its processor production in Europe in the coming years. In this way, the chip manufacturer intends to combat possible shortages of processors in these regions. Many European countries are hoping to host these factories. At this time, Germany, as the largest economic force in the EU, is favoured for an Intel mega-factory. France is a serious candidate as well.

Intel hopes to announce the final locations of the new factories in Europe in early 2022.

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