Intel Chooses Vigasio for Italian Chip Factory: Report

Alexander Koerner

Intel (NASDAQ:INTC) has chosen the town of Vigasio in Italy’s Veneto region, about 70 miles west of Venice, for its new multibillion-dollar chip factory in the European country, Reuters reported.

The media, quoting two people Familiar with the matter, noted that the deal was reached earlier this month, but has not been publicly announced due to the country’s general election.

Prime Minister Mario Draghi resigned earlier this year and far-right politician Giorgia Meloni won the country’s general election held over the weekend.

Vigasio was chosen because it is close to Germany, where Intel (INTC) is expected to build two factories, according to one of the sources. The other regions considered were Piedmont, Lombardy, Puglia and Sicily.

The factory is part of the semiconductor giant to plan invest $77.5 billion in Europe over the next decade.

Intel (INTC) The investment is initially worth $4.35 billion, but is expected to increase over time, the outlet added. The company said it would create 1,500 jobs and an additional 3,500 jobs for suppliers and partners.

The new factory is expected to start producing chips between 2025 and 2027 and is expected to be an advanced semiconductor packaging and assembly plant.

Last week, Bank of America lowered its estimates on AMD and Intel (INTC), indicating “further deterioration” in the consumer PC market and the removal of excess inventory.

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