Germany's Finance Minister Rejects Intel's Demands for Increased Subsidies for Chip Plant

[Edited] Germany's Finance Minister, Christian Lindner, is rejecting Intel's demands for higher subsidies for a 17-billion-euro chip plant, citing budget constraints.

Credit: REUTERS

The Financial Times reported on Sunday that Lindner stated, "There is no more money available in the budget. We are trying to consolidate the budget right now, not expand it."

Initially, the company was set to receive 6.8 billion euros in government support for its fabrication plant in Germany. However, due to increased energy and construction costs, Intel is now requesting approximately 10 billion euros, according to the newspaper.

Intel has not yet responded to Reuters' request for comment outside of office hours. Last year, Intel announced its selection of the central German city of Magdeburg for a new chip-making complex as part of an $88 billion investment initiative across Europe. This initiative includes expanding a factory in Ireland, establishing a packaging and assembly site in Italy, and setting up a design and research facility in France.

Intel is among several chipmakers, including Taiwan's TSMC and the US-based Wolfspeed, that are seeking government funding to build factories in Europe.

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• Germany's Finance Minister, Christian Lindner, is refusing Intel's request for higher subsidies for a chip plant.

• Lindner cited budget constraints as the reason for rejecting the demand.

• Intel was initially set to receive 6.8 billion euros in government support but is now requesting around 10 billion euros due to increased costs.

Source: REUTERS