Political cooperation breaks the deadlock! Broadcom cancels investment in semiconductor factory plans in Spain

According to reports from foreign media, sources revealed that Broadcom has canceled the plan to build a chip manufacturing factory in Spain. The plan was originally one of the important investment projects under Spain's "PERTE Chip".

Broadcom announced its investment in Spain in 2023. The plan originally planned to build a rear-end semiconductor manufacturing factory, focusing on the final packaging and testing stage of the chip. The expected investment amount is close to US$1 billion, and it could have created about 500 business opportunities.

Information, the factory is part of Spain's "PERTE Chip" (PERTE Chip), which received up to 1.2 billion euros (about 1.3 billion U.S. dollars) in the EU's epidemic recovery fund, and is used to strengthen the European semiconductor industry.

However, Broadcom's partnership with the Spanish government continued to stalemate in 2024, continually engaging in political changes in Spain and the United States, and the re-take of US President Trump has become the last straw to suppress the collapse plan.

The exact reason for the breakdown of the agreement is still unknown, but it is currently speculated that it may be related to the change of leadership levels in the West and the United States and policy changes. For example, the internal system of the Spanish government is in chaos and may slow down the progress of cooperation. The recent issues related to taxes in the United States may also affect Broadcom's investment intentions.

In addition, Broadcom has never publicly stated its actual investment amount (the USD 1 billion comes from the Spanish Ministry of Economic Affairs), and the undetermined location selection has kept the project in a state of uncertainty. At the same time, Cisco's plan to set up a chip design center in Barcelona has been successfully promoted, and the Broadcom case has never been implemented.

In addition to Broadcom, many large chip manufacturers have reduced or adjusted their investment plans in Europe. According to Bloomberg, Intel announced in September last year that it would postpone the 3 million Euro crystal mill project in Mardeburg, Germany; Wolfspeed and German auto parts supplier ZF Friedrichshafen AG have also withdrawn their expansion operations in Germany.

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