According to two people familiar with the matter, Italy’s prime minister and Intel have chosen Vigasio in the northern Veneto area as their preferred location for a planned multibillion-euro chip facility in Italy.

Intel’s commitment in Italy is part of a larger plan revealed by the US chipmaker last year to invest up to €80 billion in capacity expansion across Europe over ten years.

Intel has stated that the Italian facility will create 1,500 jobs, plus an additional 3,500 positions across suppliers and partners, with activities set to begin between 2025 and 2027. The initial expenditure of around €4.5 billion is projected to increase over time.

More details after Italy’s general election

The Italian plant is to become a cutting-edge semiconductor packaging and assembly facility, employing innovative methods to weave together intricate circuits from tiles.

Two people familiar with the matter, who asked not to be identified owing to the topic, told Reuters that Intel and Italy established a detailed agreement in early September. Still, no formal disclosure would be given until the conclusion of Italy’s general election, which is taking place at the time of writing.

Intel’s representative declined to comment since the discussions are ongoing and private. The office of Italy’s current prime minister also declined to comment. Vigasio, a municipality on the vital Brenner road and railway near Verona, is said to be preferred over an alternative location in the northern Piedmont area.

Rome may shoulder part of the investment

Among other things, Vigasio is well-connected to the German city of Magdeburg, where Intel will develop two plants. Intel and the government have previously examined locations in Lombardy, Apulia, and Sicily.

Reuters has reported that Rome is willing to support up to 40 percent of Intel’s investment in Italy. The state commitment to Intel’s investment program must be discussed by the country’s future government before any transaction is finalized, one of the sources said, adding that Intel’s current minister may let the upcoming minister announce the decision.