€10 Billion Subsidy for Intel Chip Plant in Germany
Intel plans two new processor plants in Magdeburg!
Package to include both financial aid, and caps on energy prices.
Site is the most significant foreign direct investment in German history!
Tweet on Intel investment in Germany
Over €10 Billion Subsidy for @Intel Chip Plant in Germany!
Package to include both financial aids, caps on energy prices
According to Bloomberg, the site is the largest foreign direct investment in German history!#Intel #semiconductor #chips https://t.co/GKSfMQ76YS— The_Journalbiz (@the_journalbiz) June 19, 2023
Tweet by Bloomberg on Intel
Germany and Intel Corp. sealed an agreement for the US company to receive an enlarged subsidy package worth about €10 billion ($10.9 billion) for a semiconductor facility in the former communist east, according to people familiar with the deal.
Intel confirmed the accord Monday without providing a specific amount for the financial aid.
It said it plans to invest around €30 billion in the “leading-edge wafer fabrication site” in Magdeburg, which Chancellor Olaf Scholz said represents “the single largest foreign direct investment in German history.”
Together with Intel’s facilities in Ireland and Poland, the new site — which will consist of two fabs and be called “Silicon Junction” — will create an end-to-end semiconductor manufacturing infrastructure, supporting the European Union’s push for a more resilient supply chain, Intel said in a statement.
- The first facility is expected to enter production in four to five years following European Commission approval, it added.
“Today’s agreement is an important step for Germany as a high-tech production location — and for our resilience,” said Scholz, who attended a signing ceremony for the deal at the chancellery in Berlin together with Intel Chief Executive Officer Pat Gelsinger.
Intel bought the land for the project in late 2022 and initially agreed to build the facility with €6.8 billion in government aid but postponed the start of construction due to economic headwinds.
Intel said the site is expected to create 7,000 construction jobs during the initial construction phase, as well as around 3,000 permanent high-tech jobs and tens of thousands of additional positions “across the industry ecosystem.”
