Italy is close to clinching a deal initially worth $5 billion with Intel to build an advanced semiconductor packaging and assembly plant in the country, two sources briefed on discussions told Reuters on Thursday.
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Intel's investment in Italy is part of a wider plan announced by the US chipmaker earlier this year to invest $88 billion in building capacity across Europe, which is striving to cut its reliance on Asian chip imports and ease a supply crunch that has curbed output in the region's strategic car sector.
Asking not to be named due to the sensitivity of the matter, the sources said the government of outgoing Prime Minister Mario Draghi was working to have an agreement in place by the end of August, ahead of a snap national election scheduled on Sept. 25.
Sources have previously told Reuters that Rome is ready to fund as much as 40% of Intel's total investment in Italy, which is expected to rise over time from the initial $5 billion.
Draghi's office and Intel both declined to comment.
