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
Happy now?
Chips for self-driving car AI (datacentre)? storage-Memory(/SSD)? Embeded chips/IoT-chips?
www.intel.com/content/www/us/en/automotive/products/programmable/overview.html
AMD's CapEx ($306 million for the past 12 months) vs. Intel's CapEx ($20.73 billion), TSMC's is even higher at $29.8 billion, but TSMC is already heavily investing in two new fabs abroad (one in Arizona for 5 nm-class lithography and one in Japan (Kumamoto) for 28 nm-class), a third backend fab at home and it has geopolitical interests in its business not to shift too far away from Asia. The weaker its presence in Taiwan and adjacent friendly territories, the stronger China's resolve to take it as a war spoil will become, as China itself is not immune to the blow it would receive from having their semiconductor output gone. The world runs on chips, even in such unfortunate times ;)
Thus, it stands to reason (to me anyway) that Intel is the only company in position - and with a viable business roadmap - to commit to such a large investment in Europe right now.
Could it be that English is not the mothertongue of the "writers" in here ?