MADRID (Reuters) -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
Broadcom Cancels Plans for Microchip Plant Investment in Spain
MADRID (Reuters) -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.
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.
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".
($1 = 0.8559 euros)
(Reporting by Pietro Lombardi, edititng by Andrei Khalip and Jane Merriman)
