Italy plans to boost domestic chip production with subsidies. 4 billion euros the government plans to invest by 2030.
Italy would like to welcome chip producers to the country in the coming years. This is according to a draft law that Reuters was able to see. The draft details plans to set aside 4 billion euros to boost domestic chip production.
The subsidies are part of a package of economic support measures worth 8 billion euros. 150 million euros are to be invested this year, then 500 million euros annually until 2030.
The Italian government will promote “research and development of microprocessor technology and investment in new industrial applications of innovative technologies,” it is written.
Lure
The subsidies are a lure for Intel. Indeed, the chip maker has long kept Europe in suspense about the location of its new chip factory. Anonymous sources previously leaked that Intel is showing strong interest in Germany, France and Italy. According to German media, the deal has already been finalized and the chip factory will be located in Magdeburg.
Italy, however, is not backing down and is now throwing its own money at luring Intel. Yet Italy is not betting on one horse; it is also in talks with STMicroelectronics, MEMC Electronic Materials and Tower Semiconductor.
Completely detached from Intel, Italy is not doing so because of the other negotiation talks. Intel is, in fact, acquiring Tower Semiconductor. The deal should be completed within the year. That is very interesting for Italy since Tower Semiconductor already opened chip plants in Italy.
European framework
In addition to its own subsidies, Italy is leaning on the European framework. Indeed, with the European Chip Act, the EU itself is also investing €43 billion by 2030. The Chips Act should ensure that by 2030 at least 20 percent of global chip production is done in Europe.
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