Intel will produce chips of the latest generation in Saxony-Anhalt from 2027. Originally, financial aid from the federal government worth 6.8 billion euros was promised. Now there is more to talk about.
US chip manufacturer Intel says it is negotiating the scope of financial aid with the federal government in view of rising costs. “We are working closely with the German government to close the existing cost gap,” an Intel spokesman said today.
A lot has changed since the announcement to build several factories for chip production in Magdeburg: “Geopolitical challenges have grown, global demand for semiconductors has fallen and increased construction costs, energy prices and inflation are challenging the global economy.”
According to reports, Intel is demanding 10 billion euros in financial aid from the federal government in the current talks instead of the previously promised 6.8 billion euros. First, the “Handelsblatt” reported that the US group was expecting higher costs for its plant.
Intel in Germany
In March 2022, Intel announced that the latest generation of chips would be produced in the state capital of Saxony-Anhalt from 2027. In a first expansion stage, two semiconductor factories are to be built, which could create several thousand jobs. At the time, Intel had given the investment sum as at least 17 billion euros.
This and next week there should be further talks between the federal government and Intel. The federal government wants to tie an increase in funds to certain conditions, according to negotiating circles. According to Intel, construction will start in 2024. Archaeological investigations and preparatory work for the construction are currently being carried out on the site in Magdeburg.
Source: Stern
