[News] Increasing Pressure on IDM 2.0 May Lead Intel to Delay or Abandon Investment Plans in Italy and France

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In 2022, Intel engaged in negotiations with the Italian government, planning to invest USD 5 billion in constructing a packaging and testing facility. This project would also receive subsidies from the Italian government, expected to cover 40% of the construction costs, along with additional subsidies or incentives. Furthermore, Intel intended to establish a research and design center in France, expected to create a complete semiconductor supply chain in Europe.

However, according to a report from Reuters, Italian Minister of Industry Adolfo Urso has indicated that Intel may delay or abandon its investment plans in Italy and France to fulfill its prior commitments in Germany. Nonetheless, Italy has not completely given up on attracting Intel; Adolfo Urso emphasizes that Italy remains very welcoming if Intel changes its mind.

On the other hand, according to another previous report from Reuters, the US government is expected to announce a significant grant for Intel’s Arizona project soon. This grant will be part of the USD 39 billion direct appropriations and USD 75 billion loans and guarantees under the “Chip Act.”

Among the recipients of subsidies under the “Chip Act,” Intel is expected to receive the largest subsidy to date. According to a previous report from Tom’s Hardware, Intel is anticipated to receive a government subsidy of USD 10 billion, with TSMC and Samsung potentially included in the latest subsidy list as well.

Samsung Electronics is, according to its own expectation, investing USD 17 billion to construct a foundry in Taylor, Texas, while TSMC is investing roughly USD 40 billion to build a foundry in Phoenix, Arizona. However, there are rumors suggesting that due to the U.S. prioritizing domestic companies, the expected subsidy amounts for Intel may differ from those for TSMC and Samsung.

The U.S. government enacted the “Chip Act” in 2022, but subsidies have been modest, with only three American companies currently benefiting, including BAE Systems, GlobalFoundries, and Microchip Technology.

In order to accelerate the development of the IDM 2.0 initiative, Intel made a significant expansion decision in 2021, investing approximately USD 20 billion in the Octillo campus in Arizona, USA. This investment involved the construction of two new fabs and the implementation of EUV production lines to support Intel’s 20A and Intel’s 18A process technologies. The new Fab 52 and Fab 62 are expected to commence operations in 2024.

Read more

• [News] Intel Submits Conceptual Drawings for Fab Construction in Germany, Installing High-NA EUV Exposure Machines
• [News] GlobalFoundries Reportedly Becomes Third Recipient of CHIPS Act Subsidy, Receives USD 1.5 Billion

(Photo credit: Intel)