Intel reportedly nearing $5 billion deal with Italy to build chip plant

Intel Core i9 12900K
(Image credit: Future)

What you need to know

  • Intel and Italy are reportedly close to a $5 billion deal that would see the tech giant build a chip plant in Italy.
  • Intel plans to invest upwards of $88 billion toward building chips in Europe in an effort to diversify its supply chain.
  • The chip factory will potentially be in the northern regions of Piedmont or Veneto, though the Lombardy, Apulia and Sicily regions were reportedly looked into initially.

Intel will likely build a chip factory in Italy following a $5 billion deal with the country, according to a recent report by Reuters. Sources told the outlet that Intel will create a plant in Italy as part of its overarching $88 billion effort to diversify its supply chain. At the moment, Intel and other chip manufacturers rely on Asian manufacturing. A $5 billion deal with Italy would help Intel spread its manufacturing load across another region.

Earlier this year, news broke that Intel would heavily invest in the European Union when it comes to semiconductor manufacturing. Italy is just one of the planned countries that Intel will expand in, alongside Germany, Poland, and Spain.

Reuters spoke with multiple sources that chose to remain anonymous about the impending deal between Intel and Italy. According to the outlet, Prime Minister Mario Draghi aimed to have an agreement in place before the end of August. A snap national election will be held in Italy on September 25, 2022.

Rome would fund up to 40% of Intel's investment in Italy, according to Reuters' sources. The investment in Italy was initially expected to be $5 billion but will likely rise.

The northern regions of Piedmont and Veneto are reportedly among the finalists for the chip plant. The Lombardy, Apulia, and Sicily regions had been considered initially, according to Reuters.

A similar investment was announced regarding a chip fab in Magdeburg, Germany earlier this year.

Sean Endicott
News Writer and apps editor

Sean Endicott is a tech journalist at Windows Central, specializing in Windows, Microsoft software, AI, and PCs. He's covered major launches, from Windows 10 and 11 to the rise of AI tools like ChatGPT. Sean's journey began with the Lumia 740, leading to strong ties with app developers. Outside writing, he coaches American football, utilizing Microsoft services to manage his team. He studied broadcast journalism at Nottingham Trent University and is active on X @SeanEndicott_ and Threads @sean_endicott_. 

Read more
Intel research and development office in Matam business park in Haifa.
Intel stock soars almost 25% in one week after JD Vance' new comments on the chip maker's AI future, as the US and UK refuse to sign the Paris AI summit's regulation decree
MSI Claw 8 AI+ on a stand and running a Sonic game.
Intel says PC gaming handhelds are its "number one priority" — can Arrow/Panther Lake chips challenge AMD's dominance?
Intel Core Ultra Series 2 HX
Overclockable AI CPUs? Intel's new flagship mobile chips offer a massive boost over previous generations.
Intel AI logo
How do Intel's new commercial processors stack up against the best from AMD and Qualcomm?
Nvidia Grace
Here's what we know (so far) about NVIDIA's alleged ARM chips for laptops
Lip-Bu Tan delivers the key-note address during the CDN Live conference in Bangalore on November 19, 2009.
Intel appoints industry veteran as new CEO to right the ship of the chipmaker
Latest in CPU GPU Components
NVIDIA CES 2025
You should be worried about NVIDIA’s launch strategy for its most popular GPUs. Here's why.
AMD Ryzen 5 5500
This 1080p gaming CPU is down to $76 — it doesn't get much better for budget PC builders
Gigabyte RTX 5080
NVIDIA's RTX 5080 is in stock at Newegg, but you won't like the new pricing
Crucial T500 1TB SSD with heatsink on a mechanical gaming keyboard.
I just bought this 34% off 1TB SSD for my gaming PC because it's fast, cheap, and well-rated — Now I can finally upgrade my gaming PC
Cyberpunk 2077 Ray Tracing Screenshot
"Groundbreaking performance improvements" — Microsoft introduces DirectX Raytracing 1.2
ASUS TUF Gaming RTX 3070 Ti
Hoping to land NVIDIA's RTX 5060? Rumors suggest it won't happen this month.
Latest in News
The Backbone One Xbox Edition mobile controller which is translucent green
Backbone launches Xbox version of its popular mobile controller — it's green!
Office 365 on Razer laptop
Microsoft Office apps are about to get a speed boost
NVIDIA CES 2025
You should be worried about NVIDIA’s launch strategy for its most popular GPUs. Here's why.
Two hands holding a gaming handheld
This new gaming handheld could be perfect for Xbox Cloud and more reasonably priced than my current go-to
Cloud servers
Microsoft has killed "several" data center projects in the U.S. and Europe, according to reports — Microsoft responds (Updated)
Photo of Microsoft's new sign-in page for Xbox.com using the Microsoft Edge browser.
Over one billion users will get a new Microsoft user experience, and it has a dark mode