If yesterday we talked about the misdeeds of the Spanish government on semiconductors, today we have to talk about our neighbors, and that’s because Reuters reported that Italy has reached an agreement with Intelwith an initial value of 5,000 million dollars, to build an assembly and packaging plant of advanced semiconductors in the country.

Intel’s investment in Italy is part of a broader plan announced by the US chipmaker earlier this year to invest $88 billion in capacity building across Europein a bid to reduce its dependence on Asian chip imports and ease a supply crisis that has slowed production in the region’s strategic auto sector.

Investment Intel Italy ROME

The sources revealed that Mario Draghi’s government was working on reach an agreement at the end of August, ahead of the snap national elections scheduled for September 25. These indicated that Rome is ready to finance up to 40% of the total investment from Intel in Italy, which is expected to increase over time from the initial $5 billion.

Although a final decision has not yet been made on where to build the facilities, the regions of Lombardy, Puglia and Sicily. So far, Rome has booked €4.15 billion until 2030 to attract chipmakers and invest in new industrial applications of innovative technologies. The government is also in talks with the Franco-Italian company STMicroelectronicstaiwanese chip makers MEMC Electronic Materials Inc and TSMCand the Israeli semiconductor towerthat Intel bought earlier this year.