Intel close to $5B deal with Italy to build assembly plant: report
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Intel (NASDAQ:INTC) is close to signing a deal that could be worth $5B initially with the Italian government to build a packaging and assembly plant in the country, Reuters reported.
The news outlet, citing multiple sources with knowledge of the discussions, noted the plant is part of the semiconductor giant's plan to invest $88B in Europe over the next decade.
Reuters added that the government of outgoing Prime Minister Mario Draghi hopes to have an agreement by the end of August. The country is facing a snap election on September 25 after Draghi said he would resign after his national unity government collapsed.
Intel (INTC) did not immediately respond to a request for comment from Seeking Alpha.
The Italian government could fund as much as 40% of Intel's (INTC) investment in the country, Reuters reported, with the figure rising from $5B over time. 
The locale of the factory is still being discussed, but Piedmont and Veneto are still under consideration. Lombardy, Apulia and Sicily were considered initially before being rejected.
In March, Intel (INTC) announced its broader expansion into Europe, including an $18.6 billion mega fab in Germany.
The mega fab, part of an initial investment by Intel of $36 billion, will see construction of two fabs in Magdeburg, Germany. This is expected to start in the first half of 2023, with production set to start in 2027, pending regulatory approval.
The new fabs will create chips using Intel's most advanced Angstrom-era transistors, and help both foundry customers as well as Intel's own businesses in Europe and globally.
Intel (INTC) is also investing in related manufacturing and research efforts in France, Ireland, Poland, Belgium and Spain as part of the package.
On Monday, credit ratings agency Moody's lowered its outlook on Intel (INTC) in the wake of its disappointing second-quarter results, citing "ongoing challenges."