Image: Reuters/Dado Ruvic/Illustration

US chip manufacturer Broadcom is planning to build a manufacturing facility in Spain in a project worth up to $1 billion, according to reports.

The company will invest in a European Union-funded programme to develop a semiconductor industry in Spain, chief executive Charlie Kawwas said last week.

鈥淓xcited to announce our decision to invest in Spain鈥檚 semiconductor ecosystem under their semiconductor support program,鈥� Kawwas said on his Twitter account.

The project in which Broadcom would be involved could be worth $1 billion, the Spanish economy ministry said in an emailed statement. Broadcom did not say how much it would invest.

The project would include the construction of 鈥渓arge-scale back-end semiconductors facilities unique in Europe鈥�, the ministry said, adding no location had been picked yet.

The Spanish government has said it would allocate as much as 12 billion euros ($13 billion) from the European Union鈥檚 pandemic relief funds it is set to receive to subsidise the development of the semiconductor industry.

Prior to Broadcom, the Spanish government had said US tech giant Cisco Systems Inc. was planning to open a new chip design centre in the northeastern Spanish city of Barcelona.

The EU is seeking to reinforce its own chip industry and reduce its dependence on U.S. and Asian supply, triggered by a global shortage of semiconductors and supply chain bottlenecks.