Germany Denies Subsidy Demands For Intel's Chip Plant
It appears that Intel (INTC) is demanding the German authorities to more subsidies for its chip plant. However, available reports suggest that Christian Lindner (Germany's FM) has refused Inte's demand saying their country can't afford it.
Intel, a technology giant that's known all over the world, is planning to build a $18 billion (17 billion euro) chip plant in Germany. For this plant, it appears that Intel is demanding more subsidies from the German authorities, and they are refusing to accept any such demands.
The German Finance Minister said that there's no money available in the current budget that could go towards that subsidy. He also added that the government's priority is to consolidate the budget rather than expand it.
Intel Is Demanding 10 Billion Euros
The original deal said that Intel will receive around 6.8 billion euros in subsidy for its fabrication plant. But it appears that high construction & energy costs have forced the company to now demand around 10 billion euros. When Intel was asked for confirmation about this news, they were not immediately available.
Just last year, Intel decided to build its new chip-making factory in Magdeburg (German City). Overall, this factory is a part of Europe's largest investment drive worth $88 billion. Part of this will also be used to boost a factory located in Italy as well as a packaging/assembling site in Italy.
For now, there are several companies like Intel looking for government funding to establish factories in the European region. In the USA, the most notable ones include the Wolfspeed and the Intel. Another big name that's seeking government funding is the TSMC from Taiwan.
Over all, it appears that the German government and Intel will reach a middle ground as there's no way either party can afford to stall such a big project. There's also a chance that Germany might end up accepting the Intel's demand by readjusting its budget.