Intel is to get €6.8 billion (about US$7.15 million) in funding from the German government towards the €17 billion initial cost of building two side-by-side wafer fabs in Magdeburg, Germany.
This represents 40 percent of the projected cost. The decision was announced on Friday June 10 by Martin Kröber, the Magdeburg representative in the Bundestag, according to a Deutsche-Presse Agentur report.
Kröber also revealed that €2.7 billion will be handed out in 2022 with remainder being provided up to 2027 when the plants are expected to begin manufacturing using an advanced node such as Intel 20A (2nm). The plants are expected to create 3,000 permanent jobs.
The money is being distributed under the auspices of the European Chips Act (SEMI Europe urges haste with European Chips Act).
The Magdeburg fabs are part of a larger investment in Europe planned by Intel. The US chipmaker has said it plans an R&D and chip design hub in France as well as foundry and chip packaging service operations in Italy, Poland and Spain.
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