According to Reuters, the Italian government is allocating more than four billion euros to increase national chip production. The news has yet to be confirmed. Reuters says it has reviewed a leaked draft decree.
Reuters claims that the Italian government will invest four billion euros in national chip production between now and 2030. Although the news hasn’t been confirmed, it’s likely to be true.
Why?
Recently, the European Commission introduced the European Chips Act, a legislative proposal to double the EU’s chip production. The European Chips Act allows member states to invest in chip production. Currently, member states can solely invest in chip research and pilot projects. State aid for manufacturing is prohibited.
The European Chips Act will only take effect after the European Council and Parliament reach an agreement. Although that could take months, the European Commission called on all member states to make preparations. One of the most important preparations is an investment budget for the national chip industry. According to Reuters, Italy’s draft is ready.
Money
Four billion euros is a serious amount, even for Italy. The Italian government is possibly trying to convince Intel to build a factory in Italy. At the end of 2021, insiders revealed that the Italian government and Intel were negotiating to establish an Intel plant. Although no news has come out in the meantime, Italy appears to be continuing the negotiations.
In early 2021, Intel promised an 80 billion euro investment in new European factories. At that time, little was known about the European Chips Act. After the European Chips Act was presented, Intel fell silent. CEO Pat Gelsinger claimed that Europe was still on the agenda, but shared no details. Later, rumours emerged of Intel planning an enormous chip factory in Magdeburg, Germany.
Who has the deepest pockets?
The rumour may as well be a tactic. The perfect location for a new factory has changed with the advent of the European Chips Act. The perfect location became the country with the deepest pockets, because the Chips Act allows state investments in chip manufacturers. Italy wants to be the perfect location. Thus, Italy is pulling the wallet. Germany is likely to up the four billion euro investment. In any case, Intel can count on more state support.
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