18 Jul, 2023 @ 19:00
1 min read

Regions of Spain vye to receive $1bn US investment and become next semiconductor hub

semiconductor chips stock

VARIOUS regions are jockeying for pole position in a nationwide business beauty contest to win a $1 billion (€889.92 million) investment in Spain by a US semiconductor maker.

The CEO of Broadcom, a prominent US-based designer and manufacturer of semiconductor products, announced his plans to open a state-of-the-art semiconductor facility within the country.

Charlie Kawwas, wrote on Twitter: “I am thrilled to unveil our decision to invest in Spain’s semiconductor ecosystem, in line with the semiconductor support program #PERTE_Chip and EU Chips Act principles.” 

While no announcement has been made on where the plant will be built, various regions of Spain have already been throwing their hats in the ring, with Asturias and Leon among them.

This move comes as part of Spain’s extensive efforts to bolster its semiconductor and microchip sector, with a planned investment of over €11.5 billion by 2027.

Barcelona earlier this year won Intel’s commitment to establish laboratories in the Catalan capital, working in partnership with the Barcelona Supercomputing Centre. 

Meanwhile, the agreement between Broadcom and Spain falls under the European Chips Act, introduced in response to the global semiconductor shortage experienced during the Covid-19 lockdowns. 

It will be part of a substantial €33 billion investment across the European Union, aimed at fortifying the bloc’s semiconductor supply chain.

PERTE Chip (also known as the Strategic Project for the Recovery and Economic Transformation of Microelectronics and Semiconductors), is an investment plan to expand the design and production capabilities of the Spanish microelectronics and semiconductor industry.

It will cover the entire value chain from design to chip manufacturing, and to generate a multiplier effect, not only in the technology sectors, but also for the industry and the economy as a whole.

The investment is drive by the shift in tack of the global economy and supply chains, where strategic assets such as semiconductors are ‘re-shored’ or ‘friendshored’ away from countries which may elect to limit supply during future tensions.

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Walter Finch

Walter - or Walt to most people - is a former and sometimes still photographer and filmmaker who likes to dig under the surface.
A NCTJ-trained journalist, he came to the Costa del Sol - Gibraltar hotspot from the Daily Mail in 2022 to report on organised crime, corruption, financial fraud and a little bit of whatever is going on.
Got a story? [email protected]
@waltfinc

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