July 14 - Broadcom (AVGO, Financial) shares dipped at Monday's open after the chipmaker pulled out of plans to build a microchip plant in Spain.
The U.S. firm abandoned talks with Spain's Digital Transformation Ministry after negotiations stalled over project terms. Broadcom did not disclose the investment size, though Madrid had previously hinted the plant could be worth about $1 billion.
Spain had earmarked roughly €12 billion from EU pandemic‑relief funds to boost its semiconductor ambitions. The decision marks a setback for the government's goal of becoming a key European chip hub.
Broadcom originally unveiled the investment in Spain two years ago but offered few details on timelines or incentives. Officials and Broadcom representatives did not immediately comment on why discussions collapsed.
According to industry watchers, the action may change Spain's direction to smaller-scale partnerships other than greenfield fabs. Spain continues to fund chipmakers by granting and upgrading their infrastructure.
As the competition in the global semiconductor industry is heightening, currently, Spain is under pressure to ensure it gets other projects and keeps the push to its digital-industry policy moving.
