What will the American Intel do with the chips it will build in Italy (with state money)
Intel's microchip factory in Italy will be built in Vigasio, Veneto: a 4.5 billion packaging plant, largely covered by the government. All the details
The US microchip company Intel, in agreement with Mario Draghi's outgoing government, has selected Vigasio – a city of ten thousand inhabitants in Veneto, in the province of Verona – as the preferred site for the construction of a semiconductor factory. This was revealed by two sources to the Reuters agency.
HOW MUCH THE INVESTMENT IS WORTH, AND HOW MANY JOBS WILL IT CREATE
The initial investment will amount to approximately 4.5 billion euros but could grow over time, while the plant should – according to the company's estimates – create 1,500 direct jobs plus another 3,500 indirect jobs. Activities will start between 2025 and 2027.
INTEL'S PLANS FOR EUROPE (AND NOT ONLY)
The investment in Italy is part of a broader plan for Europe announced last March by Intel, worth 80 billion euros over the next ten years.
– Read also: How much public money will Intel collect to produce chips in Europe?
The company's interest in the Old Continent is explained by its business model restructuring plan. Historically, in fact, Intel has been involved in the design of semiconductors, but now it also wants to become a manufacturer for those companies that simply develop them and delegate their construction to third parties. Essentially, it wants to enter TSMC and Samsung 's market segment and compete with them.
PACKAGING OF MICROCHIP
Vigasio will be a technologically advanced chip packaging plant, the last link in the supply chain that leads to the finished product.
Some time ago the CEO Pat Gelsinger explained that the company does not want to concentrate all its manufacturing activities in a single European state, but rather intends to create an integrated system on the continent: namely production factories in a certain country and production plants. packaging in another, for example.
NEGOTIATIONS BETWEEN INTEL AND THE DRAGHI GOVERNMENT
According to Reuters sources, it seems that Intel and the Draghi government reached an agreement on the Italian factory in early September, but decided to postpone the public announcement after elections.
WHY VIGASIO
Before the latest revelation by Reuters , the sites considered most likely for the Intel factory were other: the Mirafiori area, in Turin, the historic district of FIAT and today of Stellantis; or Catania, where STMicroelectronics already operates.
Vigasio, however, is considered the best option for a reason: the geographical position. The city is in fact located on the Brenner motorway (A22) and is well connected with Germany and in particular with Magdeburg, where Intel intends to build two factories.
Read also: Will Intel package the chips it will produce in Germany in Italy?
THE PUBLIC CONTRIBUTION
The Italian government could cover up to 40 percent of Intel's investment with public funds.
OTHER NEGOTIATIONS
To enhance the domestic chip manufacturing capacity, the government is also in talks with the Italian-French company STMicroelectronics, with the Taiwanese companies TSMC and MEMC and with the Israeli Tower Semiconductor ( acquired by Intel).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/intel-chip-vigasio/ on Mon, 26 Sep 2022 07:30:59 +0000.