✎ Contributed by Ty Griffin
Plans to expand Europe’s semiconductor manufacturing sector suffered a major blow today after Broadcom confirmed it would no longer pursue its proposed €12 billion chip facility in Spain. The withdrawal ends months of negotiations with the Spanish government over subsidies and infrastructure commitments, dealing a setback to the European Union’s push for supply chain independence in advanced chips.
The scrapped facility—intended as a key component of Europe’s broader “Chips Act” initiative—was expected to support backend assembly, testing, and packaging of semiconductors. With Broadcom reversing course, investors are questioning the feasibility of Europe’s goal to produce 20% of global chips by 2030.
Market Reaction
- Broadcom Inc (NASDAQ: AVGO): $275.83, up 0.53%
- Intel Corp (NASDAQ: INTC): $23.14, down 1.26%
- NVIDIA Corp (NASDAQ: NVDA): $164.95, flat (up 0.021%)
- Advanced Micro Devices Inc (NASDAQ: AMD): $146.64, up 0.15%
- Taiwan Semiconductor Manufacturing Co (NYSE: TSM): $228.61, down 0.74%
Investor Sentiment
Shares of Broadcom rose modestly, with investors viewing the move as a prudent shift away from complex cross-border infrastructure negotiations. Intel—which has its own EU-based buildout plans—slipped on concerns the reversal may signal broader regulatory headwinds. AI-driven players like NVIDIA and AMD held steady as market attention remained fixed on domestic production and demand momentum in the U.S.
Sector Outlook
Analysts say Broadcom’s decision could impact Europe’s credibility in attracting semiconductor giants, especially amid growing competition from U.S. incentives under the CHIPS Act. The EU may now face pressure to streamline regulatory pathways and offer clearer financial guarantees to remain competitive.
Broadcom’s pivot underscores a shift toward consolidation of manufacturing in politically stable and incentive-rich jurisdictions—further concentrating chipmaking in North America and East Asia.
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