Italy is allocating 4 billion euros ($4.6 billion) until 2030 to boost domestic chip production. According to the draft decree seen from Reutersthe plan is to bring in companies like Intel to reduce its current chip shortage and its reliance on foreign chip supplies.
Intel is in talks with Italy for a $9 billion deal over the next decade, and the company is already investing over $95 billion in its expansion into Europe within ten years. This includes plans to build an advanced chip manufacturing plant in Italy, as well as plans to build a large state-of-the-art chip manufacturing plant in Germany. The goal is to use the funding to convert existing factories into chip factories and build new factories.
Italy is also in talks with STMicroelectronics, MEMC, and Israel Tower Semiconductor to provide “research and development of microprocessor technology and investment in new industrial applications of innovative technologies,” the ruling said.
In addition, Italy enjoys the benefits of new funding rules in line with European Chip Law is intended to encourage chip manufacturing in Europe and reduce reliance on chip shipments from overseas, as shipping semiconductors from the US and Asia can be costly. Italy is trying to compete with other European countries such as Germany, France. And the Netherlands, which are also doing their best to charm tech companies into settling in their territory.
Intel isn’t the only tech giant investing heavily in its chip manufacturing facilities. Taiwan Semiconductor Manufacturing Corporation (TSMC) plans to spend more than $100 billion over the next three years ramping up production. While Samsung is investing $205 billion in its chip manufacturing operations over the same timeframe.
Similar to the Chip for America Act passed in the United States. The idea is to boost domestic chip production to become more competitive with China. With plans to build two more than $20 billion semiconductor manufacturing plants in Ohio.
What does this mean for the global chip shortage? More factories mean more chips to meet demand. Increasing domestic production means improving the supply chain, which is not tied to one specific region of the world. More importantly, this will mean the hardware. We want to buy will have a better chance of returning to stock, such as game consoles and GPUs.