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Germany's Finance Minister Rejects Intel's Demands for Increased Subsidies for Chip Plant
Germany's Finance Minister, Christian Lindner, denies Intel's plea for higher subsidies, citing budget constraints.
Germany's Finance Minister, Christian Lindner, has refused Intel's request for additional subsidies amounting to 10 billion euros for their 17-billion-euro chip plant. According to the Financial Times, Lindner stated that the country cannot afford the increased financial support as the budget is currently undergoing consolidation.
Initially, Intel was slated to receive 6.8 billion euros in government aid for their fabrication plant in Germany. However, due to rising energy and construction costs, the company is now seeking a larger sum. The news report highlights that Intel's demand exceeds the originally agreed-upon amount by approximately 3.2 billion euros.
In response to this development, Intel has not provided an immediate comment to Reuters outside of office hours as of yet, as stated by Reuters who reported this news. It is worth noting that the tech giant had previously announced its decision to invest $88 billion in Europe, with Magdeburg, Germany selected as the location for the new chip-making complex. Intel's investment plan also included strengthening a factory in Ireland, establishing a packaging and assembly site in Italy and creating a design and research facility in France. Notably, Intel is one of several chipmakers, including Taiwan's TSMC and Wolfspeed from the United States who are seeking governmental funding for constructing factories in Europe.
Germany's Finance Minister, Christian Lindner, refuses Intel's request for additional subsidies for their chip plant.
Lindner states that the budget is currently being consolidated, leaving no room for expanding financial support.
Intel initially expected to receive 6.8 billion euros in government aid but now demands approximately 10 billion euros due to increased costs.