Broadcom chooses Spain for manufacturing plant

THE technology giant Broadcom has announced that it will invest €900 million in building a microchip manufacturing plant in Spain that promises to be unique in Europe.

Charlie Kawwas, the President of Broadcom, announced on social networks his decision to “invest in the semiconductor ecosystem in Spain” taking advantage of the PERTE Chip program launched by the Government, an abbreviation for the Strategic Project for the Recovery and Economic Transformation (PERTE) of Microelectronics and Semiconductors, which aims to strengthen the production capacities of the Spanish industry of microelectronics and semiconductors.

After the pandemic, the Ukraine war and breakdowns in the global supply chain for microchips, the PERTE Chip programme was created by the Spanish government to address this lack of autonomy in the sector of semiconductors in Europe. The European Union also recently approved the European Chips Act, with funds dedicated to helping member countries to boost this sector and encourage more microchip “foundries” to be built in Europe to reduce dependence on Asian countries.

Charlie Kawwas wrote on Twitter: “We are excited to announce our decision to invest in Spain’s semiconductor ecosystem. Thank you, Sánchez Castejón for your support and decision to build a more resilient global semiconductor value chain.

“The large-scale facility would be unique in Europe in a yet-to-be-revealed location. The intention is to construct “back-end” semiconductors, the only facility with this capability in Europe.” Kawwas stated that he was seeking to create a niche market for the company that will cater to the demands of the telecommunications industry while creating more job opportunities in Spain.

Nadia Calviño, the First Deputy Prime Minister and Minister of Economic Affairs, has hailed this as “great news”, and that this move is “a sign of the confidence of international investors in our country“. Spain seeks to attract more foreign investors and businesses with new initiatives in the technology sector.

Broadcom, an American technology firm, employs over 20,000 employees and is a designer, developer and global supplier of infrastructure and semiconductor software products with a market capitalisation value above $350 billion(€318 billion ).