The Strategist

Intel asks Germany for €10 billion in aid

02/09/2023 - 02:29

According to the Handelsblatt newspaper, which cited government sources, US-based Intel has asked the German government for an additional €3 billion in subsidies on top of the €6.8 billion it has already approved for the country's chip factory project, despite the crisis and inflation-targeting policies.

Nick Knupffer
Nick Knupffer
A new semiconductor factory for Intel would be constructed in Magdeburg. However, the firm delayed the start of construction, which was initially planned for the first half of 2023, in December because it believed the money originally agreed upon was insufficient due to inflation and rising energy and building material prices.

According to Handelsblatt, "The American concern believes that it is essential to pay federal subsidies of roughly €10 billion for the building... in Magdeburg." The corporation has asked for more than €3 billion in subsidies in addition to €6.8 billion that have already been approved. The publication notes that the meeting with the government took place a few weeks ago, and discussions on the new proposal are set to happen this Friday.

Insiders claim that the delay is actually due to the company's plans to deploy a new, more contemporary method of chip fabrication in the factory utilizing equipment from the Netherlands, not the realities of the crisis.


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