US chipmaker Intel closed in on a $5 billion deal to build an advanced semiconductor packaging and assembly plant in Italy, part of a wider European expansion effort, Reuters reported.
The news agency stated Italy’s government aims to seal an agreement with Intel by the end of the month which could see it cover 40 per cent of the company’s total investment.
Earlier this year, Intel CEO Pat Gelsinger detailed plans to invest €80 billion ($81.8 billion) into European expansion over ten years as it seeks to diversify its supply chain and increase its global capacity.
The company is exploring the construction of new plants in Germany, upgrading a facility in the Republic of Ireland, and creating a R&D and design hub in France.
Earlier this year the European Commission outlined an €11 billion investment plan to boost the bloc’s chip industry and reduce reliance on the US and Asia.
A delayed US investment package was recently passed by the nation’s Senate and House of Representatives, with President Joe Biden now expected to sign it into law.
Intel had reportedly halted construction of a plant in Ohio due to the hold up in passing the legislation.