Rome Coaxes Intel Into €4B - €8B Chip Plant Investment: Reuters - Intel (NASDAQ:INTC)

Rome is cajoling Intel Corp INTC to invest billions of euros in an advanced chipmaking plant in Italy, Reuters reports.
The Italian factory would be an "advanced packaging" plant that uses new technologies to manufacture whole chips out of tiles produced by Intel and other chipmakers.
Rome is already in talks with Intel about the potential investment, rumored at over €4 billion ($4.7 billion), reaching up to €8 billion, the report adds.
The factory would create over 1,000 direct jobs in Italy.
Interestingly, Germany emerged as the frontrunner to land an even bigger mega factory planned by Intel to counter the global chip crisis that has especially endangered the auto sector.
France is also a contender for the mega factory, while Italy faces competition from Poland, where Intel also has a presence for the packaging facility.
Rome is ready to partly fund the overall investment with public money and offer favorable terms to Intel, including labor and energy costs.
The potential sites include Turin's Mirafiori area, the Italian home of carmaker Stellantis NV STLA, and Catania in Sicily, where French-Italian chipmaker STMicroelectronics NV STM already operates.
Intel CEO Pat Gelsinger aims to announce the locations of two major new EU chip fabrication plants by year-end as it looks to spend €80 billion over the next decade on the continent.
Intel plans to reserve capacity at its chip factory in Ireland for automakers and help them shift to using its technology.
Italian Prime Minister Mario Draghi emphasized initiatives to increase output to meet its target of producing 20% of the world's semiconductor output by 2030.
Italy could also obtain a research center as another part of the overall investment Intel is preparing for Europe.
Also Read: Why Intel Shares Crashed After-Hours Today
Price Action: INTC shares traded lower by 10.6% at $50.09 on the last check Friday.

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