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Intel finalizes a deal to build a chip factory in Italy

They already announced it in March, after the Italian government decided to allocate 4,600 million euros until 2030 to give a boost to the manufacture of processors in the country. But now it is confirmed: Intel is going to build a chip factory in Italyand that’s it closing the fringes of the agreement which will give free rein to the project, which will have a budget of at least 5,000 million dollars, according to Reuters. The factory will be used to produce chips that are currently made in other markets.

This step is part of the company’s plans to increase its manufacturing capacity in Europe and thus rely less on China and Asian manufacturers. And if all goes according to plan, it will be ready before the end of the month, as outgoing Italian President Mario Draghi is working to get the deal done before general elections in September.

The Italian government is ready to finance at least 40% of the costs of Intel’s investment in the country, which will initially be $5 billion but is likely to rise in the coming years. And the company has confirmed that, as announced in March, “Intel and Italy are negotiating to green light a state-of-the-art manufacturing facility. Negotiations are ongoing and are confidential.”

That is why there are still no details of the conditions of the agreement. It is not even decided where it will be built. For now, there are two areas that have more possibilities to see the factory rise, already valued by both parties in the negotiations. Both are in the north: Piedmont and Veneto.

Intel announced last week its intention to expand its chip manufacturing capacity in Europe, for which it is going to invest a minimum of 80,000 million euros in its semiconductor manufacturing infrastructure on the continent until 2030. It has been several weeks since it has confirmed its intention to build a mega-factory in Magdeburg (Germany), after evaluating various options in France, Belgium, Poland and the Netherlands.

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