Report: Intel requires €10 billion subsidy for German fab

Report: Intel requires €10 billion subsidy for German fab

News |
By Peter Clarke

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.

Related links and articles:

Handelsblatt article

News articles:

Intel delays German fab, wants more subsidy

Intel goes slow, casts doubt on Italian chiplet fab

Germany plans to pay €5 billion towards Magdeburg fabs

Opinion: Full-fat finance is missing from Intel’s European plan

Intel confirms German fabs in €80bn European investment

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