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Intel wants $5 billion more in German subsidies for chip plant – Bloomberg News
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(Reuters) – Intel Corp is seeking an additional 4 billion to 5 billion euros ($5.28 billion) in subsidies from the German government to build a chip manufacturing complex in the country, Bloomberg News reported, citing people familiar with the matter.
(Reuters) – Intel Corp is seeking an additional 4 billion to 5 billion euros ($5.28 billion) in subsidies from the German government to build a chip manufacturing complex in the country, Bloomberg News reported, citing people familiar with the matter.
The U.S. chipmaker last year postponed the plant construction in Magdeburg – for which it had reached a 6.8 billion euro deal in government subsidies, subject to approval from the European Commission – due to economic headwinds and is now looking for more aid, the report said on Tuesday.
Intel did not immediately respond to a Reuters request for comment.
The company in March 2022 picked Germany as the site for a huge new chipmaking complex, as part of an $88 billion investment drive across Europe, which included boosting an existing factory in Ireland, setting up a design and research facility in France, and a packaging and assembly site in Italy.
The initial spending was then estimated to total 33 billion euros, including 17 billion euros in Germany. However, Bloomberg News reported Intel now expects to spend 30 billion euros in its project in Germany.
Intel was expecting roughly 40% of its Germany project to be subsidized, under the EU’s Chips Act, but is now also open to other sources of government aid including tax breaks or energy subsidies, the report added.
The expansion in Ireland and France, meanwhile, remains largely on track, the people told Bloomberg News.
($1 = 0.9478 euros)
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shinjini Ganguli)
The EU's Chips Act is legislation aimed at boosting semiconductor production in Europe, providing funding and support to enhance the region's technological capabilities.
A chip manufacturing complex is a facility where semiconductor chips are produced, involving various processes like design, fabrication, and assembly.
Economic headwinds refer to factors that can negatively impact economic growth, such as inflation, rising interest rates, or supply chain disruptions.
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