Germany does not want to increase subsidies for Intel to build new plant from $7.34bn to $10.8bn

The German government is not eager to increase subsidies for Intel, which wants to build a semiconductor plant in Germany. This was announced by Finance Minister Christian Lindner.

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The key reason is the lack of extra money in the country's budget. According to the minister, the budget should be cut, not expanded. The only exception is spending on defence capacity building.

Intel intends to invest $88bn in building sites in Europe. A German plant will appear in Magdeburg. The construction cost is estimated at €17bn ($18bn). The American company wants €10bn ($10.8bn) in subsidies, but the German authorities are willing to allocate only €6.8bn ($7.34bn).

Meanwhile, Chancellor Olaf Scholz and German Economy Minister Robert Habeck support additional funding for the blue-chip company. However, Intel must then scale up.

Robert Habeck cites the U.S. initiative, which provides $52 billion to companies that are willing to build chip plants in the country. Major players including Intel, Samsung, TSMC and Micron intend to take advantage of this.

Source: Reuters