Intel to receive nearly $11bn in subsidies from Germany to build big factory in Magdeburg

Intel will still receive an increased subsidy for the construction of a German semiconductor plant. The new facility will appear in the city of Magdeburg.

Here's What We Know

German authorities have reached an agreement with the U.S. processor giant to give it €10 billion ($10.8 billion) in subsidies to build the plant. The package, in addition to financial subsidies, includes a cap on energy costs.

Germany originally agreed to provide only €6.8bn ($7.34bn) in subsidies because of budget constraints. Intel wanted €10 billion ($10.8 billion) and Federal Chancellor Olaf Scholz agreed.

Source: Bloomberg