Italy Plans $4.6 Billion Fund To Boost Chipmaking

An anonymous reader quotes a report from Reuters: Italy plans to set aside more than $4.6 billion until 2030 to boost domestic chip manufacturing as it seeks to attract more investment from tech companies such as Intel, a draft decree seen by Reuters showed on Tuesday. The government is trying to persuade the U.S. group to spend billions of euros on an advanced chipmaking plant in Italy that uses innovative technologies to weave full chips. Rome is ready to offer Intel public money and other favorable terms to fund part of the overall investment, which is expected to be worth around $9 billion over 10 years, Reuters reported in December. To boost domestic chipmaking, Italy is also in talks with French-Italian STMicroelectronics , Taiwanese-controlled MEMC Electronic Materials Inc and Israeli Tower Semiconductor, which is set to be bought by Intel. Negotiations with Intel are complex as the U.S. group has tabled very tough demands, a government source involved in the talks told Reuters. As part of an 8 billion euro package to support the economy and curb surging energy bills, Italy plans to allocate 150 million euros in 2022 and 500 million euros per year from 2023 until 2030, the decree showed. The Italian government will promote "research and development of microprocessor technology and investments in new industrial applications of innovative technologies," the legislation added. Rome aims to use the funding also to convert existing industrial sites and favor the construction of new plants in Italy.

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