Facing the rising demand for semiconductors in crucial sectors, notably automotive, which has already forced production slowdowns around the globe, Spain has made it a policy goal to attract a major chip maker to set up shop on its soil. The government, via the Microelectronics and Semiconductors Group (PERTE Chip), is mobilizing Next Generation funds to unlock public investment totaling 12.25 billion euros by 2027. The strategic plan unfolded with a high-profile presence at the World Economic Forum in Davos, where the prime minister, Pedro Sánchez, met with the four leading industry players to pitch the country as a favorable destination for investment. As of now, the impact has not met expectations. North American players such as Intel, Qualcomm, Micron, and Cisco have shown interest, yet they have shifted focus toward Italy, signaling a potential $5 billion (roughly 4.9 billion euros) factory project that could reshape regional investment dynamics.
The push aligns with an expansive investment plan reported to total about $88 billion (86.5 billion euros) to boost capacity across Europe. According to private briefings cited by Reuters, a major chipmaker is already conducting negotiations that could see Italy capture a substantial share of the investment, while other European sites are being evaluated in parallel. The implication is clear: the competition for next‑generation semiconductor manufacturing capacity in Europe is intense, and sites across the region are being shortlisted as contenders for new fabs. The outcome could redefine regional supply chains and technology leadership if confirmed, with Italy appearing as a central beneficiary in this round of expansion.
Spain risks losing a strategic asset in this ongoing reshuffle, a situation reminiscent of recent shifts where large-scale battery factories pursued by Stellantis and other manufacturers moved to different European locations. France and Germany have been noted as destinations for comparable investments, while Italy emerges as a surprising focal point for several high‑value projects. The broader narrative is shaped by the perception that Spain has been unable to attract investor momentum to the same extent as rival nations in the European Union. In this climate, Bloomberg recently reported that the country faces challenges in luring chipmakers under the PERTE Chip program, emphasizing a market where a limited pool of dedicated, investment-ready players competes for scarce, strategic projects. Analysts and observers point to stiff competition from other EU members as a primary reason for the slow pace of commitments and actual fabs taking root. (Reuters, Bloomberg)