Germany refuses additional subsidy for new Intel plant

Germany refuses additional subsidy for new Intel plant

The German government has refused an additional 10 billion euro subsidy request by Intel. It wishes to build a new chip factory in Magdeburg.

In an interview with the Financial Times, German Finance Minister Christian Lindner indicated that there was no extra budget for an additional 10 billion euros worth of subsidy. The minister said that releasing additional money to increase the already existing subsidy would not be justified for the country.

Intel had asked the German government for an additional subsidy to build its chip factory in eastern Germany. The German government already subsidizes this construction to the tune of 6.8 billion euros. However, Intel recently deemed it necessary to ask for additional financial aid.

Higher energy prices and construction costs would require an additional 10 billion euros. In total, the plant should cost 17 billion euros.

Part multiple investments

Intel has not yet responded to the disappointing news. The construction of the chip factory is part of an $88 billion investment by the chip giant to build additional production and development sites in Europe.

In addition to a plant in Magdeburg, a plant in Ireland, a packaging and assembly site in Italy and a design and research facility in France are also planned.

Also read: According to Intel, we can say goodbye to 16- and 32-bit