Broadcom Cancels $1B Packaging Plant in Spain

According to sources cited by Europa Press, Broadcom has officially scrapped its plan to build a semiconductor packaging and testing facility in Spain. The project, first announced in 2023, was expected to represent an investment of nearly $1 billion and create approximately 500 jobs. This initiative was originally part of Spain's "PERTE Chip" program, which is backed by €12 billion from the European Union's post-pandemic recovery funds to strengthen Europe's semiconductor capabilities.

However, negotiations between Broadcom and the Spanish government reportedly stalled throughout 2024, preventing any progress. Notably, Broadcom never publicly confirmed the investment figure—information that came solely from Spain's Ministry of Economic Affairs—and failed to finalize a location for the proposed plant, leaving the project in uncertainty.

While Broadcom's plan fell through, Cisco's chip design center project in Barcelona has advanced smoothly. Meanwhile, several other major semiconductor companies have also adjusted or scaled back their European investments. For example, Intel announced a delay in its €30 billion wafer fab project in Magdeburg, Germany, in September 2024. Additionally, Wolfspeed and ZF Friedrichshafen AG withdrew plans to expand their semiconductor operations in Germany.