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Tom’s Hardware
Tom’s Hardware
Technology
Mark Tyson

Intel's plan to postpone chip plant in Italy confirmed by the country's Industry Minister

Logic technology lead.

Intel has shelved plans to build an advanced packaging and chip assembly plant in Italy, reports Reuters. The Industry Minister announced the postponement at a presser in Verona, in the north of the country, this week.

We first became aware of Intel's outline plans to build mega fab locations in Germany, France, and Italy in February 2022. The following month, we learned that Italy was preparing a $4.5 billion fund to welcome the chipmaker. This was in addition to the probable EU Chips Act money that would become available. So far, only Germany has been seen to benefit from solid development and construction plans.

Minister Adolfo Urso explained to reporters that Intel has "given up or postponed its investments in France and Italy, compared with others that it plans in Germany." Urso seemed keen to keep the door open for Intel. The industry minister talked about how Italy was still keen on Intel's investment and how its advanced packaging and chip assembly plant could still be developed if Intel changed its mind about the project.

However, Urso also made it clear that several other semiconductor players are interested in developing facilities in Italy. Earlier in the week, for example, Singapore's Silicon Box announced a $3.5 billion investment in a new plant in northern Italy, providing 1,600 direct new jobs. Urso told reporters this major foreign investment was just one of several coming in the next few months.

The Italian Industry Minister didn't name other semiconductor players interested in setting up in the country, but he did mention that his government has been in talks with Taiwanese groups over recent months.

Intel has yet to comment on the Reuters report regarding the postponement of development in Italy. It was also interesting to hear the casual announcement that the previously touted investments in France have been put on hold. France was set to be the base for a prestigious R&D center—a smaller-scale investment that is still important to Intel's European vision.

In contrast, Intel appears to be progressing steadily with its German plans. The chipmaker reportedly published plans for its multi-billion site near Magdeburg, Germany, earlier this month. The sophisticated yet expansive Fab 29.1 and Fab 29.2 are expected to become production-ready by Q4 2027.

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