Intel close to building $5 billion plant in Italy

Earlier this week, Reuters wrote Intel is close to sealing the deal for a $5 billion plant in Italy. The facility will reportedly focus on cutting-edge, tile-based semiconductor packaging and assembly. Nothing is official yet, Intel is said to be looking at sites in the northern regions of Piedmont and Veneto. Lombardy, Apulia, and Sicily regions were initially considered but did not make the cut.

It's believed Italy's government will fund up to 40 percent of the facility. The plant is part of a broader European investment drive from Intel, the chip giant plans to invest $88 billion in Europe over the coming decade. Previously, Intel announced two semiconductor fabs in Magdeburg, Germany.

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.