Report: Intel requires €10 billion subsidy for German fab
Intel has said that €10 billion in subsidy is now required for it to go ahead with a wafer fab project in Magdeburg, Germany, according to a Handelsblatt report.
It was already known the project had a “funding gap” that needed to be closed (see Intel delays German fab, wants more subsidy). However, €10 billion would represent almost 50 percent of the increased €20 billion initial project cost.
Early in 2022 Intel announced it would build a wafer fab Magdeburg, Germany at an initial cost of €17 billion with €6.8 billion to be covered by government funding.
Intel has approached the German government for more money because of rising energy costs and because the company would like to put a more advanced manufacturing process into the fab, according to Handelsblatt quoting government sources,
Intel reported poor 4Q22 financial results recently.