Broadcom to invest in EU-backed chip program in Spain
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Editor's Note: The article was amended to note that Charlie Kawwas is President of the Semiconductor Solutions Group at Broadcom, and not its CEO.
Broadcom (NASDAQ:AVGO) will invest in an EU-backed program to bolster semiconductor capacity in Spain, according to Charlie Kawwas, President of the Semiconductor Solutions Group at Broadcom
"Excited to announce our decision to invest in Spainâs semiconductor ecosystem under their semiconductor support program and EU Chips Act principles," said Kawwas in a tweet on Thursday.
Kawwas also thanked Spain's Prime Minister Pedro SÃ¡nchez for support and decisiveness to build a resilient global semiconductor value chain.
The project, in which Broadcom would be involved, could be worth $1B, Reuters reported citing Spain's economy ministry.
However, the company did not provide details on how much it will invest.
The program would include building "large-scale back-end semiconductors facilities unique in Europe", the ministry added. No location was finalized yet.
Spain's government aims to provide as much as â¬12B (~$13B) from the EU's pandemic relief funds the country is set to receive to subsidize the development of the semiconductor industry, according to the report.
Before Broadcom, Spain's government had disclosed that Cisco Systems Inc. (CSCO) was planning to open a new chip design centre in Barcelona.
Following supply chain hiccups seen in the recent past, countries have been gearing up to bolster supply of semiconductors. Earlier this week, Thierry Breton, the Commissioner for Internal Market of EU stressed on further semiconductor collaboration with Japan.
U.S. tech Intel (INTC), in June, announced plans to set up chip plants in Germany and Poland as part of a larger $88B investment agenda in Europe over the coming years to bolster semiconductor capacity.
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