United States Chipmaker Broadcom ( AVGO.O ) will invest in a European Union-funded program to develop the semiconductor industry in Spain, Chief Executive Charlie Kawwas said late on Thursday (6th July 2023).
"We are pleased to announce our decision to invest in Spain's semiconductor ecosystem under their Semiconductor Support Program," Kawwas said on his Twitter account.
The project involving Broadcom could be worth $1 billion, the Spanish Finance Ministry said in an emailed statement. Broadcom did not say how much it would invest.
The project will involve the construction of a "large-scale back-end semiconductors facility unique in Europe," the ministry said, adding that a location has not yet been selected.
The Spanish government said it would allocate 12 billion euros ($13 billion) from the European Union's pandemic relief funds to subsidize the development of the semiconductor industry.
Before Broadcom, the Spanish government used U.S. Tech giant Cisco Systems Inc. ( CSCO.O ) said it plans to open a new chip design center in the northeastern Spanish city of Barcelona.
EU to strengthen its own chip industry and U.S. And it's trying to reduce dependence on Asian supplies, fueled by global semiconductor shortages and supply chain bottlenecks.
-- Reuters
