Intel Receives 10 Billion Euros in Subsidies for Chip Factory Construction
Intel has received a major boost in its plans to build a chip factory in Magdeburg, Germany, with the government agreeing to provide 10 billion euros in subsidies. The agreement was confirmed to Reuters by a person involved in the negotiations.
Intel’s Investment Plan
The chip factory was originally planned to be built with 6.8 billion euros in German subsidies, but Intel said that it was impossible to set up the chip factory with that amount due to economic setbacks. Intel then requested additional subsidies, but Germany refused to provide any more. The agreement also includes a price ceiling on energy.
Intel had originally estimated its own costs at 17 billion euros, but is now adjusting that to 30 billion euros. The total investment for the factory is now 40 billion euros, with Intel investing 30 billion euros and Germany providing 10 billion euros.
Positive Reaction from Chancellor
Olaf Scholz, Chancellor of Germany, commented positively on the agreement reached: “Today’s agreement is an important step for Germany as a high-tech manufacturing location and for our resilience. With this investment, we are catching up with the world’s leading technology and increasing our own capabilities for the development of ecosystems and the production of microchips.”
Intel has plans to open multiple factories in Europe, with Israel and Poland also recently being planned. In 2021, Intel promised an investment plan of 80 billion euros for European chip production.
Intel Receives Major Boost for Chip Factory Construction
Intel has received a major boost in its plans to build a chip factory in Magdeburg, Germany, with the government agreeing to provide 10 billion euros in subsidies. The agreement was confirmed to Reuters by a person involved in the negotiations, and marks a major step forward in Intel’s plans to increase its chip production in Europe.
Intel’s Investment Plan
The chip factory was originally planned to be built with 6.8 billion euros in German subsidies, but Intel said that it was impossible to set up the chip factory with that amount due to economic setbacks. Intel then requested additional subsidies, but Germany refused to provide any more. The agreement also includes a price ceiling on energy.
Intel had originally estimated its own costs at 17 billion euros, but is now adjusting that to 30 billion euros. The total investment for the factory is now 40 billion euros, with Intel investing 30 billion euros and Germany providing 10 billion euros.
Positive Reaction from Chancellor
Olaf Scholz, Chancellor of Germany, commented positively on the agreement reached: “Today’s agreement is an important step for Germany as a high-tech manufacturing location and for our resilience. With this investment, we are catching up with the world’s leading technology and increasing our own capabilities for the development of ecosystems and the production of microchips.”
Intel has plans to open multiple factories in Europe, with Israel and Poland also recently being planned. In 2021, Intel promised an investment plan of 80 billion euros for European chip production, and this agreement is the first step in that plan.
The agreement between Intel and the German government is a major boost for Intel’s chip production plans, and marks a major step forward in Intel’s plans to increase its chip production in Europe. With the agreement now in place, Intel has the financial backing it needs to move forward with its plans, and it is likely that the chip factory in Magdeburg will be completed in the near future.