Two well-informed sources said that the outgoing government of Prime Minister Mario Draghi and US giant Intel have chosen Vigasio, in Italy’s northeastern Veneto region, as the preferred location for a new multi-billion euro semiconductor (chip) plant. It is noted that Intel’s investment in Italy is part of a broader plan, which was announced in March this year, with the goal of directing up to 80 billion euros with a ten-year perspective to develop its capacities in the Old Continent. Intel said that with an initial investment of around 4.5 billion euros, which is expected to increase over time, the Italian plant will create 1,500 jobs, as well as an additional 3,500 supplier and partner positions, with work starting between 2025 and 2027

The Italian plant will operate as a cutting-edge semiconductor packaging and assembly facility using new technologies to create semiconductors. The sources, who asked not to be identified due to the sensitivity of the matter, said the Italian parties reached a detailed and comprehensive agreement on the project earlier this month. However, an official statement will not be made publicly until the situation is fully clarified after the elections are completed and a new government is formed. For its part, a representative of the American technology group Intel did not comment on the situation, since the relevant negotiations continue and are conducted in secret. The position of Mario Draghi’s office was similar.

As for the location of the new plant in Vigasio, it is close to Verona, on the strategic highway and the Brenner railway line. It was chosen from a list of places, one of which was Piedmont. Vigasio has good ties to neighboring Germany, including the city of Magdeburg, where Intel will build two more factories, one well-informed source added. Intel and the government also initially considered sites in the regions of Lombardy, Puglia and Sicily. Close aides of Mario Draghi are set to open behind-the-scenes talks with their potential successors as they want to avoid any risk that Italy’s new government will challenge the deal, people familiar with the matter said. They added that the choice of location is extremely politically sensitive, but declined to provide further details. For its part, the Reuters news agency reported that Rome is ready to finance up to 40% of Intel’s total investment in Italy.

Of course, as it becomes clear, the participation of the state in the program of the company is something that must be discussed with the future government before any agreement is finalized. The above-mentioned sources said, adding that Mario Draghi may allow the next government to make a statement. Finally, he points out that Rome wants to boost domestic semiconductor manufacturing, so it is in talks with Franco-Italian ST Microelectronics, Taiwan’s MEMC Electronic Materials Inc and TSMC, and Israel’s Tower Semiconductor, which Intel bought earlier this year.