Broadcom to Invest in EU-backed Chip Project in Spain
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Update time : 2023-07-11 13:40:37
U.S. chip giant Broadcom will invest in an EU-backed program to increase semiconductor capacity in Spain, said Charlie Kawwas, president of the company's semiconductor solutions business unit.
Kawwas said in a tweet on Thursday, "Pleased to announce our decision to invest in Spain's semiconductor ecosystem in line with the principles of Spain's semiconductor support program and the EU Chip Act." Kawwas also thanked Spanish Prime Minister Alexis Sanchez for his support and decisiveness in building a resilient global semiconductor value chain. Spain's Ministry of Economy said Broadcom will participate in the project, which could be worth up to $1 billion. However, Broadcom did not provide details on the amount of the investment. The economy ministry added that the plan would include the construction of "a large back-end semiconductor facility unique to Europe. The location has not yet been determined. It is understood that the Spanish government plans to allocate up to 12 billion euros (about $13 billion) from the EU's epidemic relief fund to subsidize the development of the semiconductor industry. Before Broadcom, the Spanish government had revealed that Cisco plans to open a new chip design center in Barcelona. After the recent supply chain problems, countries are now stepping up preparations to increase the supply of semiconductors. Earlier this week, EU Internal Market Commissioner Thierry Breton highlighted further semiconductor cooperation with Japan. In June, U.S. technology company Intel, for its part, announced plans to build chip factories in Germany and Poland as part of the company's plan to invest $88 billion in Europe over the next few years to increase its semiconductor production capacity.
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