Sunday, June 12th 2022
Germany to Give Intel €6.8 Billion Towards Magdeburg Fab
German media is reporting that Intel will be receiving some €6.8 billion in subsidies for its planned Magdeburg fab. Some €2.7 billion has already been set aside for the 2022 federal government budget and the remaining money will be allocated in the 2023 and 2024 budgets. The Magdeburg member of the Bundestag, Martin Kröber, who announced the budget allocation to the local media, said that Intel's establishment in Magdeburg should be a boost for the entire Saxony-Anhalt area.
Intel's total investment in Magdeburg has a budget in excess of €33 billion, which means that the German government is pitching around a fifth of the total investment. That said, the first fab will only end up somewhere around the €17 billion mark, with space for a further two fabs on the location Intel has selected. Production at the new fab is estimated to begin sometime in 2027. In related news, TSMC is said to have decided on skipping Europe for the time being, largely due to lack of local customers, according to Reuters.
Sources:
Frie Press, Reuters, via The Register
Intel's total investment in Magdeburg has a budget in excess of €33 billion, which means that the German government is pitching around a fifth of the total investment. That said, the first fab will only end up somewhere around the €17 billion mark, with space for a further two fabs on the location Intel has selected. Production at the new fab is estimated to begin sometime in 2027. In related news, TSMC is said to have decided on skipping Europe for the time being, largely due to lack of local customers, according to Reuters.
63 Comments on Germany to Give Intel €6.8 Billion Towards Magdeburg Fab
Actually TSMC and Intel both have been flirting with several European countries for several months but TSMC recently pulled out, as per the above article. They are the only two actively seeking multiple partnerships globally. There have been a few others that are building new foundries but I forget where.
If it weren't legal Germany certainly wouldn't offer up 6.8 billion to Intel. The EU is going to get it's piece of the pie after all.
Essentially Germany made the best offer out of the European countries vying for the new fab.
Additionally Dresden has its silicon-saxony called region wich got a bit out of focus in the say last decade or so.
The ecologic and economic changes of the last few decades and the coming ones include shifts away from coal mining,
wich has a relatively big impact on some regions.
So like the help for Bosch or Tesla and so on this is 100% consistent in what our republic voted them for.
Worst case scenario, EU slaps them with some laughable fine.Intel will probably source some Eastern Europeans anyway. With the 'open borders' concept in the EU that is the case with most tech companies. German youth is too PC to get proper education and start real careers.
GF is not small at all, 30B market cap.
Its a lose/lose for a government, dont pay the bribe (like us in the UK) and you dont get the investment from the corporate. This in turn hurts your economy. Pay the bribe, and it has a short term financial cost plus the effect you paying for someone else's infrastructure. As has been mentioned, things like tax breaks and grants are effectively the same thing but simply fall under the radar easier as its not an announced lump sum up front.
What happens is that the poorest states in Europe pour money into the German economy and then the Germans pour that money into the US economy. In the end, the whole of Europe is enslaved by the americans.
-The same was offered to Tesla, they refused in the end i think. This happens a lot, it's no so much a competition, but more a opportunity. Usually a company says it wants to expand to Europe and then every country tries to get the fab for them. I know in the Tesla case it was Tesla that did the competition not the other way around, my country was in the run for it.
-It is, it has rules, i assume they were approved. There was a specific plan in the EU to bring chip manufacturing to Europe
Apple would have the money, but like AMD, they remain fabless and both would potentially become Intel customers in the future as Gelsinger intends to license the Intel manufacturing process for third-party companies to use. A Ryzen or Radeon built on the Intel 20A process node may be closer to reality than you think, much to the chagrin of brand loyalists everywhere. I wonder if they would call AMD traitors and stop buying from them, too? :laugh:
AMD and Apple being fabless for now doesn't mean it can't change in the future.
The whole game is a geopolitical strategy to return the critical manufacturing infrastructure back to home - away from the "enemies" - the other 135 countries in the world led by China, Russia, India, South African Republic, Mexico, Latin America, Africa who will like to establish a new world economic order.
The German move is very wise and is aimed as long term profit for the infrastructure. The money doesn't leave Germany actually it will return in taxes by employees and Intel itself consuming local goods.
It is way better as invest into Russian Gas addiction.