Italy Plans $4.6 Billion Fund To Boost Chipmaking

An anonymous reader quotes a report from Reuters: Italy plans to set aside more than $4.6 billion until 2030 to boost domestic chip manufacturing as it seeks to attract more investment from tech companies such as Intel, a draft decree seen by Reuters showed on Tuesday. The government is trying to persuade the U.S. group to spend billions of euros on an advanced chipmaking plant in Italy that uses innovative technologies to weave full chips.

Rome is ready to offer Intel public money and other favorable terms to fund part of the overall investment, which is expected to be worth around $9 billion over 10 years, Reuters reported in December. To boost domestic chipmaking, Italy is also in talks with French-Italian STMicroelectronics , Taiwanese-controlled MEMC Electronic Materials Inc and Israeli Tower Semiconductor, which is set to be bought by Intel. Negotiations with Intel are complex as the U.S. group has tabled very tough demands, a government source involved in the talks told Reuters.

As part of an 8 billion euro package to support the economy and curb surging energy bills, Italy plans to allocate 150 million euros in 2022 and 500 million euros per year from 2023 until 2030, the decree showed. The Italian government will promote "research and development of microprocessor technology and investments in new industrial applications of innovative technologies," the legislation added. Rome aims to use the funding also to convert existing industrial sites and favor the construction of new plants in Italy.

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[Krishnoid]

And making marinara. Now chips too? Can't wait to see the lasagna that comes out of that venture.

Re: well

[ickleberry]

They have lovely pizza in Italy with chips on top called wurstel e patate

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[Joce640k]

Their reputation for making reliable electronics isn't stellar though.

How about 4.6B...

[Excelcia]

There is a war going on. Today. How about 4.6B to reduce dependence on Russian (or any foreign) oil? Or to bolster defenses. Or to bring in refugees. Or to send weapons and aid to Ukraine?

But damn it, at least in ten years you'll have three failed chip foundries to boast of that you can hand over to Russia when they walk from country to country unopposed. Gotta love appeasement. It worked so WELL for you last time, didn't it?

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[ShanghaiBill]

How about 4.6B to reduce dependence on Russian (or any foreign) oil?

The way to do that is more efficient cars, better logistics algorithms to reduce trucking, and better networking to replace commuting with embedded VR.

All of these things rely on semiconductors.

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[account_deleted]

Comment removed based on user account deletion

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[Excelcia]

Italy is already bringing in refugees and is sending weapons to Ukraine.

Yes, about €500k worth of weapons. Well done.

As of "bolster the defences", we have the US for that

Are you serious? The US is doing less than nothing. No one is doing anything except wagging a finger and saying "you better stop that or we're going to sanction you more." And then going on business as usual. Don't worry, folks. Putin will stop at Ukraine. He said he would. It'll be "Peace For Our Time" Spend 4.6B on chip plants in a country no one wants to buy chips from. Like I said, it's just more infrastructure you can hand over to Putin in a f

Seems a bit light

[Virtucon]

over 8 years that's $575m/yr. That won't even pay for a fab, it may however reduce the economic impact of giving away tax breaks etc. to companies who relocate operations to Italy.

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[ShanghaiBill]

over 8 years that's $575m/yr. That won't even pay for a fab,

The subsidy isn't intended to pay the full cost of a fab. Only enough to incentivize the fab to be built in Italy instead of somewhere that makes more sense.

Corporate welfare

[leathered]

I'd be seriously pissed off if I was an Italian taxpayer. Chip fabs don't employ that many people, and there are not many people employed in the supply chain either.

Money could be much better spent elsewhere.

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[ceoyoyo]

Everybody is falling over themselves to give money to chip makers because, um, something shortage something?

As a shareholder in most of the big ones, I approve.

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[ShanghaiBill]

Everybody is falling over themselves to give money to chip makers because, um, something shortage something?

Shortages come and go. By the time these fabs are online, there is likely to be a massive glut in capacity.

As a shareholder in most of the big ones, I approve.

The fabbers are making big profits now and sucking in taxpayer-funded subsidies, But five years from now, they are going to be fabbing below-cost or idling capacity.

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[ceoyoyo]

Of course. When there are only a handful of fabs and they cost a bajillion dollars to build, you wait until there's enough demand, build one, which causes a slight glut, then wait until demand builds up again. Demand for fab capacity increases over time though, so except for maybe a little blip when the backorders get filled, any new fabs will be utilized and in five or ten years we'll need more again.

So if the Italian, American, British, whatever, governments wish to gift half a fab because it's trendy rig

Learn from history

[Canberra1]

Look what happened to HP when they decided to make prototypes overseas. (Hint HP41 days). Look at British ICL and their doomed memory plant. Look at Germany, even they have copped a beating. Look at Israel. Failure to produce a modem chip, failure to beat Apple and M2.Look at Philippine and Thailand and Malaysia (Hint China made better offers to weaken below critical mass). Now look at Taiwan - and they are unbeatable, having put Israel and USA in their boxes. States should NOT try to pick winners. Otherwis

More chips for everyone!

[AndyKron]

Italians making computer chips? That's a spicy meatball!