July 15, 2025 /SemiMedia/ — Broadcom has reportedly abandoned its plan to build a semiconductor back-end facility in Spain after negotiations with the Spanish government broke down, according to people familiar with the matter.

The canceled project casts doubt on Spain’s ambitions to become a key player in Europe’s semiconductor landscape. The Spanish government had previously announced plans to allocate up to €12 billion in EU recovery funds to support the country’s semiconductor and microchip industry.

Broadcom first proposed the investment two years ago, though the company did not disclose financial details. The Spanish government later estimated the project could be worth around $1 billion and described it as a uniquely large-scale back-end chip facility for Europe.

The collapse of the Broadcom deal could pose a setback for Spain's efforts to attract global semiconductor leaders and strengthen its role in Europe’s chip supply chain.