Semiconductors (Italian market)

• Semiconductors (European market)

2024: $4.6 billion earmarked for semiconductor industry

As of May 2024

2022: Italy allocates €4bn for chip production

In early March 2022, Italy created a €4 billion fund to develop chip production. With these funds, the country's leadership seeks to attract more investment from technology companies such as Intel.

To stimulate domestic chip production, Italy is also in talks with the French-Italian STMicroelectronics, Taiwan's MEMC Electronic Materials, and Israel's Tower Semiconductor. An Italian government source involved in the talks told Reuters that the talks are complex because Intel has made very tough demands.

In early March 2022, Italy created a €4 billion fund to develop chip production

In addition, Italy intends to offer Intel favorable conditions for concluding a production agreement. Nuances such as tax, construction and investment benefits will be present in the deal. Intel expects to spend a total of up to $95 billion in Europe to create a full-fledged semiconductor business, so the amounts of EU and nation-state contributions should be considered in this context, as well as long-term benefits.

In order to attract Intel to this project, Italy also relies on the introduced rules for financing innovative semiconductor industries, adopted in February 2022 by the European Commission in accordance with the so-called Chip Act. According to Reuters, Brussels intends to allocate €15 billion of additional public and private investment by 2030 in addition to €30 billion of public investment already planned from NextGenerationEU, Horizon Europe and national budgets.

Intel wants to create a complete ecosystem in the EU, so the company intends to build a plant for the production of modern semiconductors. It seems that this particular enterprise will be built in Italy, as additional funding from the Italian state is being prepared for March 2022.^[1]

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