Jun 16, 2023 /SemiMedia/ -- According to Bloomberg, Intel is expected to receive €10 billion in subsidies from the German government to build a chip fab in eastern Germany.
The report pointed out that due to the unfavorable economic situation at the end of last year, Intel delayed the construction plan and has been asking the government to provide more funds. As part of the negotiations, Germany has now agreed to provide around 10 billion euros in subsidies.
Insiders said that the German government is willing to provide more subsidies, but only if Intel significantly increases its overall investment in the fab.
Intel initially estimated that the German chip factory would cost 17 billion euros, but now expects it to cost 30 billion euros, the report said. Like most projects that will receive government funding through the European Union's Chips Act, Intel estimates that it will receive subsidies of about 40% for its fab.
