Company – Intel wants more financial aid from the federal government – Economy

Magdeburg/Berlin (dpa) – US chip manufacturer Intel is negotiating with the federal government on the scope of financial aid in view of rising costs. “We are working closely with the German government to close the existing cost gap,” an Intel spokesman said today.

A lot has changed since the announcement to build several factories for chip production in Magdeburg: “Geopolitical challenges have grown, global demand for semiconductors has fallen and increased construction costs, energy prices and inflation are challenging the global economy.”

According to reports, Intel is demanding 10 billion euros in financial aid from the federal government in the current talks instead of the previously promised 6.8 billion euros. First, the “Handelsblatt” reported that the US group was expecting higher costs for its plant.

Federal Economics Minister Robert Habeck (Greens) said today in Potsdam on the negotiations with Intel: “We are very far in the talks. The subsidy demands are high, and then we are in concrete talks as to whether they can be met or not.”

Habeck continued: “But that we also like Intel here in Deutschland I’d like to emphasize that.” That doesn’t mean “that we blindly spend every euro of tax money and throw it after it,” said Habeck, who described Intel as “one of the big players.” Semiconductor production is of great importance.

Intel in Germany

In March 2022, Intel announced that the latest generation of chips would be produced in the state capital of Saxony-Anhalt from 2027. In a first expansion stage, two semiconductor factories are to be built, which could create several thousand jobs. At the time, Intel had given the investment sum as at least 17 billion euros.

This and next week there should be further talks between the federal government and Intel. The federal government wants to tie an increase in funds to certain conditions, according to negotiating circles. According to Intel, construction will start in 2024. Archaeological investigations and preparatory work for the construction are currently being carried out on the site in Magdeburg.

Magdeburg’s member of the Bundestag, Martin Kröber (SPD), said there was no more time to lose. “We finally need Germany speed with the Intel settlement.” There are already many billions of euros that the Bundestag has made available for the factory in Magdeburg. “But if Intel wants to invest more, we have to provide more support.”

© dpa-infocom, dpa:230601-99-904897/4