The American microcontroller industry giant frequently launches substantial investment campaigns to increase its chip production across the globe. This is also the case for Veneto, the Italian region chosen for an unprecedented massive project. It is the settlement of Intel in Italy, for a very delicate and important commercial deal, which aims to counter the shortage of microprocessors on the world market. Unfortunately, commercial conditions dictate the highest level of information confidentiality, and the news remains secret and confidential, available only to the parties involved. Although the agreements’ details are yet unknown, it appears that the project may potentially move forward.
The choice of the area
Although there is no confirmed information at this time and the discussions are still underway in the strictest of confidence, the initial rumors show how carefully the plants’ strategic locations were chosen. In any case, the agreement between Intel and the Italian government would be enormous in all respects. Politically, economically, and commercially, it is a crucial strategic choice. The official and final negotiations should be concluded after the general election on September 25, 2022.
The only information that has surfaced thus far is the location of the facility that would house Intel, which is expected to be situated in Vigasio, Veneto, 20 kilometers from Verona. The Veneto city was chosen by Intel and the Italian government over other cities in Piedmont, Lombardy, Apulia, and Lombardy. The news was mainly heard in the press and mass media, for a project of national and regional significance, which would secure 4500 new jobs and also provide a decisive boost to the entire Italian economy. The Vigasio park could be one of the best places to house Intel. In fact, from an urban planning standpoint, this land may be compatible with the settlement. Vignasio was chosen because it is strategically close to the motorway and the Brenner railway. It is a logistics area in which very important multinational companies have already settled and it is suitable to accommodate other important facilities.
The area is huge and covers 500,000 square metres. The settlement of Intel would also move a very impressive work machine, as it would prepare the start of the necessary works for a general adjustment of the road network and new adjustments of the motorway network in the immediate vicinity of the facility. In addition, there would be the advantage of an easy and quick connection to Germany (via the Brenner motorway and railway), where two other sites would also be built.
As yet, there is no official confirmation from Intel, and negotiations with the Italian government are still ongoing and concealed in the utmost secrecy. To date, the mayor of Vigasio is cautious, as the municipality has not yet been involved, but for the University of Verona such an investment would represent a dream come true and would also mean a radical change of model for the entire educational, industrial, and commercial system. In recent years, in fact, the Veneto region has never had a reality as great as the one that would provide for the development of electronic chips on a global scale. The advantage could also have repercussions in the IT sector.
The demand for chips in the market
At present, the market is in constant demand for chips. The current opportunities offered by the EU are attracting the attention of the electronics industry giants, and, in fact, there are also other major companies in the sector ready to take advantage of incentive opportunities in Europe. Worldwide, the sales of cars and electronic equipment by many companies have dropped dramatically precisely because of the lack of chip availability. For this very reason, the most important chip manufacturers are starting new research and development campaigns to try to build more new factories to make new chips.
If such a company were to be located anywhere in Italy, it would certainly represent added value for the entire Italian economy. Italy wants to increase the production of electronic chips nationwide, and the new factory, which is the result of economic agreements between the Italian government and Intel, will be set up in a very strategic area and will focus on packaging (i.e., the container with the connecting terminals) and semiconductor assembly.
The final agreements are expected to be finalized soon, when the new Italian government takes office. Intel’s huge investment is expected to reach EUR 80 billion over the next 10 years to create a new production base in Europe. Operations are expected to start between 2025 and 2027, a date that is not too close but not too far away either. The construction of the facility envisages an initial investment of EUR 4.5 billion, and another major funding source, probably 40% of the total, should also come from the Italian state. This opportunity is also historic for Confindustria, for which the Italian political and economic system must make itself totally available in order not to miss this great opportunity for growth and internationalization of the city. Should the investment materialize, as all parties involved hope it will, the most important hope is that it will not create any difficulties for the natural development of this enormous commercial machine.
The current project, about which there will certainly be news in the coming days, will certainly be of national interest, and since the project should be realized between 2025 and 2027 and is only in the preliminary phase, the details can be addressed and formalized after the new government takes office. In any case, the establishment of Intel in that particular area would increase the value of all neighboring facilities since the location of the likely logistics infrastructure will be in highly strategic geographical positions.
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