Germany asks Intel to increase investment

 

Germany is asking Intel to increase its planned €17B ($18.8B) chip factory investment in Magdeburg, Germany, in exchange for higher subsidies.   The factory is gearing up to be Germany’s largest foreign direct investment since WWII. Intel is expected to receive €6.8B ($7.5B) in subsidies from the German government to build the chip manufacturing plant. According to sources, Intel is seeking at least €10B ($11.1B) in subsidies, citing higher energy and construction costs. German officials are considering increasing the amount of subsidies on the condition that Intel invests more in the country. The discussions come amid the U.S.’s CHIPS and Science Act, which offers $52.7B in subsidies for semiconductor research, development, and manufacturing in the U.S.