(Reuters) -Spain's state-owned tech investment arm and U.S. company Diamond Foundry plan to invest 2.35 billion euros ($2.71 billion) in a new microchip manufacturing plant in the western Extremadura
Spain and Diamond Foundry's $2.7B Chip Plant Investment
(Reuters) -Spain's state-owned tech investment arm and U.S. company Diamond Foundry plan to invest 2.35 billion euros ($2.71 billion) in a new microchip manufacturing plant in the western Extremadura region, Cinco Dias reported on Tuesday, citing unnamed sources.
The project, to be approved by the Spanish cabinet this week, would see SETT - the state's tech investment vehicle - contribute 753 million euros from the country's semiconductor support programme.
Diamond Foundry, which is backed by U.S. actor Leonardo DiCaprio, is set to invest almost 1.6 billion euros by 2029, the newspaper said.
It already operates a synthetic diamond plant in the region, and the new facility would be Europe's first large-scale producer of diamond substrates for advanced chips.
Neither Diamond Foundry nor SETT immediately responded to requests for comment.
The investment is expected to create more than 2,100 jobs, around 500 of them directly at the factory, the Cinco Dias report added.
The project comes weeks before early regional elections in Extremadura, where the local government called a snap vote after failing to pass its budget.
($1 = 0.8681 euros)
(Reporting by Jesus Calero; Editing by Kirsten Donovan)
