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Italy, Intel near $5B deal for chip factory

The Intel Corporation logo sometimes appears on a display in a store in Manhattan, NEW YORK, U.S., November 24, 2021. REUTERS/Andrew Kelly/File Photo GLOBAL BUSINESS WEEK AHEAD

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  • Initial investment in Italy will probably be worth $5 billion
  • Italy attempting to have deal set up by end-August
  • Intel, Rome eye sites in Piedmont, Veneto regions

ROME, Aug 4 (Reuters) – Italy is near clinching a deal initially worth $5 billion with Intel (INTC.O) to create a sophisticated semiconductor packaging and assembly plant in the united kingdom, two sources briefed on discussions told Reuters on Thursday.

Intel’s investment in Italy is section of a wider plan announced by the U.S. chipmaker earlier this season to get $88 billion in building capacity across Europe, that is striving to cut its reliance on Asian chip imports and ease a supply crunch which has curbed output in the region’s strategic car sector. read more

Asking never to be named because of the sensitivity of the problem, the sources said the federal government of outgoing Prime Minister Mario Draghi was attempting to have an agreement set up by the finish of August, before simple national election scheduled on Sept. 25.

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Sources have previously told Reuters that Rome is preparing to fund just as much as 40% of Intel’s total investment in Italy, that is likely to rise as time passes from the original $5 billion. read more

Draghi’s office and Intel both declined to comment.

The factory would use new technologies to weave together full chips out of tiles.

Intel and the federal government have shortlisted possible sites in two Italian regions, the sources said, with one of these adding they’re situated in the northern parts of Piedmont and Veneto.

Your final decision on where you can build the facility is yet to be produced, both sources said. The Lombardy, Apulia and Sicily regions had been considered initially.

The full total size of Intel’s investment and how Italy plans to invest in its share of it isn’t yet clear.

Beneath the so-called Chips Act targeted at funding innovative semiconductor facilities, the European Commission early this season said it had offered 15 billion euros in additional public and private investment by 2030. That is along with 30 billion euros of public investments already planned from NextGenerationEU, Horizon Europe and national budgets.

Rome up to now has reserve 4.15 billion euros until 2030 to attract chipmakers and spend money on new industrial applications of innovative technologies. read more

The federal government can be in talks with French-Italian STMicroelectronics , Taiwan chipmakers MEMC Electronic Materials Inc and TSMC (2330.TW), and Israeli Tower Semiconductor (TSEM.TA), which Intel bought earlier this season.

STMicroelectronics last month signed a pact with GlobalFoundries to create a $5.7 billion chip factory in France. read more

($1 = 0.9827 euros)

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Reporting by Giuseppe Fonte in Rome and Giulio Piovaccari in Milan, additional reporting by Supantha Mukherjee in Stockholm and Jane Lanhee Lee in Oakland; editing by Kirsten Donovan

Our Standards: The Thomson Reuters Trust Principles.

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