Intel would like to receive from the German government total subsidies of 10 billion euros, three billion more than the already agreed amount, for the construction of a megafactory for the production of microcircuits in Magdeburg, writes Handelsblatt, cited by Reuters.
In March 2022, Intel announced the construction of a mega-factory of microprocessors in Germany with a total investment of 17 billion euros and received subsidies of 6.8 billion euros from the German authorities.
Sources say that because electricity costs have risen and because Intel will use more advanced technology in this new factory, the total amount of subsidies Intel is asking for is 10 billion euros.
Total investment costs are estimated to rise from 17 billion to 20 billion euros, and Intel wants subsidies to cover them.
The European Commission wants to produce chips in member countries so that companies no longer depend entirely on Asia. Establishing manufacturing bases will also be expensive for the states where the factories will be located, as the case of Intel shows.
Production should begin no earlier than 2027, but delays are possible. In January, company officials said geopolitical challenges were mounting, demand for semiconductors had fallen, and inflation and recession were wreaking havoc on the global economy.
Intel estimates the investment will create a total of 13,000 jobs in the region.
Sources: Reuters, The Register, Courier International
Photo source: Dreamstime.com
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.