Exclusive: Italy and Intel choose Veneto as the preferred region for their new chip factory

The Intel Corporation logo is seen in a temporary office during the 2022 World Economic Forum (WEF) in the alpine resort of Davos, Switzerland May 25, 2022. REUTERS/Arnd Wiegmann/File Photo

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  • Intel to Build Advanced Packaging and Assembly Site in Italy
  • Draghi’s successor will have a say before any deal is finalized
  • Italian plant would create up to 5,000 jobs, Intel says

ROME, Sept 25 (Reuters) – The outgoing government of Mario Draghi and Intel (INTC.O) have chosen the northeastern Veneto town of Vigasio as the preferred site for a new multi-billion chip factory. euros in Italy, two people familiar with the matter said.

Intel’s investment in Italy is part of a broader plan announced by the US chipmaker last March to invest up to 80 billion euros ($77.5 billion) over the next decade. in capacity building across Europe. Read more

With an initial investment of around 4.5 billion euros which is expected to increase over time, Intel said the Italian factory will create 1,500 jobs as well as 3,500 additional jobs at suppliers and partners, with operations set to start. between 2025 and 2027.

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The Italian factory would be a state-of-the-art semiconductor packaging and assembly plant, using new technologies to assemble complete chips from tiles.

Asking not to be named due to the sensitivity of the issue, the sources said the parties detailed a comprehensive agreement in early September, but that no public announcement would be made until Sunday’s general election result.

An Intel spokesperson did not comment as negotiations are ongoing and confidential. Draghi’s office also declined to comment.

Located near Verona, on the strategic Brenner highway and railway, Vigasio is the preferred option from a shortlist of two locations, including one in the northwestern Piedmont region.

Among other reasons, the site is well connected with Germany and in particular with the city of Magdeburg, where Intel will build two factories, added one of the sources.

Intel and the government had also initially considered sites in the regions of Lombardy, Puglia and Sicily.

Draghi’s close aides aim to enter into behind-the-scenes negotiations with their likely successors to avoid any risk that the deal will be challenged by Italy’s new government, the sources said, adding that the choice of site was politically very sensitive.

Opinion polls have all predicted Giorgia Meloni’s nationalist Brothers of Italy group will become the top party on Sunday and share power with its allies the League, led by Matteo Salvini, and Silvio Berlusconi’s Forza Italia.

The sources declined to provide further details, but Reuters previously reported that Rome was ready to finance up to 40% of Intel’s total investment in Italy.

The state’s contribution to Intel’s investment program must necessarily be shared with the next government before a deal is finally formalized, one of the sources said, adding that Draghi could let the next government make the decision. ‘announcement.

To boost domestic chipmaking, Rome is also in talks with Franco-Italian STMicroelectronics, Taiwanese chipmakers MEMC Electronic Materials Inc and TSMC (2330.TW) and Israel Tower Semiconductor (TSEM.TA), which Intel has bought earlier this year.

($1 = 1.0320 euros)

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Additional reporting by Valentina Za and Elvira Pollina; edited by David Evans

Our standards: The Thomson Reuters Trust Principles.

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