US chipmaker Broadcom (AVGO) has officially withdrawn its plans to invest in a microchip plant in Spain, a decision that marks a significant setback for Spain’s ambitions to become a key player in the European microchip industry.Â
The withdrawal follows a breakdown in talks with the Spanish government, as reported by Media on Sunday, July 14, 2025.
Two years prior, Broadcom had initially announced its investment, a move that the Spanish government at the time estimated could be worth $1 billion. The project was envisioned to include the construction of “large-scale back-end semiconductors facilities unique in Europe,” aiming to bolster the continent’s chip manufacturing capabilities.
This development poses a challenge to Spain’s strategic goal of strengthening its semiconductor and microchip sector, a plan that had seen the government commit approximately 12 billion euros ($14 billion) from EU pandemic relief funds.
The halted microchip investment underscores the complexities involved in fostering high-tech manufacturing initiatives within the European Union.
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