Broadcom Cancels $1 Billion Microchip Plant Investment in Spain, ET Telecom

Published 6 days ago• 2 minute read

The decision will be a blow for Spain's ambition to become a relevant player in the microchip industry in Europe. The government has previously said it would allocate some 12 billion euros ($14 billion) for the semiconductor and microchip industry, using some of the European Union's pandemic relief funds.

FILE PHOTO: The Broadcom company logo is shown outside one of their office complexes in Irvine, California, U.S., March 4, 2021. REUTERS/Mike Blake//File Photo

MADRID: U.S. chipmaker Broadcom has pulled out of plans to invest in a microchip plant in Spain as talks with the government have broken down, news agency Europa Press reported on Sunday citing unidentified sources.

Spain's Digital Transformation Ministry and Broadcom did not immediately respond to requests for comment.

The Europa Press report did not say why the talks had broken down.

Broadcom announced the investment two years ago but did not say how much it would invest. The government said at the time the project could be worth $1 billion and include the construction of "large-scale back-end semiconductors facilities unique in Europe".