Wednesday, December 29, 2021

Chips: "Italy, Intel intensify talks over $9 billion chip factory, sources say"

But no one will build another chip fab in California ever again.

From Reuters:

Intel and Italy are intensifying talks over investments expected to be worth around 8 billion euros ($9 billion) to build an advanced semiconductor packaging plant, two sources close to the matter told Reuters.

A deal of this size would secure Italy about 10% of the 80 billion euros the U.S. company is looking to spend over the next decade in Europe on cutting-edge manufacturing capacity to help avoid future shortages of semiconductor chips.

Sources had previously told Reuters that the investment size was in a 4 billion to 8 billion euro range.

As part of this plan Germany, the European Union's largest economy, is in the lead to land Intel Corp's planned European 'megafab' plant, although France remains in the running, Reuters reported in October.

Intel said it is "having constructive investment conversations with government leaders in multiple EU countries" but declined to comment specifically on talks with Italian officials....


Intel itself said they would never again build in California, something we've looked at over the years.

Here's a post from 2019:
Do You Want To Know Why Intel Said They Would Never Build Another Factory In California?

It's partly the regulation, we've looked at that over the years, links below and it's partly the cost of electricity, ditto on the looks and links. California has the highest electricity prices in the contiguous United States.
And now they seem to have something of an intermittancy problem as well.....

On top of all that, as a guy commented regarding the net inflow of people emigrating to Texas:

"Whether they are coming from Hong Kong or from California, people want to escape the political tyranny of one-party states."

That's harsh. I'll see if I can find the cite.