Broadcom Scraps Microchip Plant Investment In Spain

U.S. chipmaker Broadcom has withdrawn plans to invest in a microchip plant in Spain after talks with the government broke down, Europa Press reported on Sunday, citing unidentified sources.

The project could have been worth $1 billion and would have included the construction of large-scale back-end semiconductor facilities “unique in Europe.” I Photo: Broadcom X

The report did not specify why the discussions collapsed. The decision is a setback for Spain’s ambitions to become a significant player in Europe’s microchip industry, Pietro Lombardi also reported for Reuters.

The Spanish government had previously pledged around €12 billion ($14 billion) from the European Union’s pandemic relief funds to support the semiconductor sector.

Broadcom first announced the investment two years ago. At the time, officials said the project could be worth $1 billion and would include construction of large-scale back-end semiconductor facilities “unique in Europe.”