Monday, June 12th 2023
Germany Turns Down Intel's Request for More Fab Fund Subsidies
According to The Financial Times, the German Finance Minister—Christian Lindner—is not interested in giving Intel more money than already agreed upon. Lindner stated to the news outlet that "There is no more money available in the budget," and went on to say "We are trying to consolidate the budget right now, not expand it." This is bad news for Intel, as the company was hoping to get a total of €10 billion in subsidies from the German government for its new fab in Magdeburg.
Now it looks like Intel will have to make do with the already promised €6.8 billion that the German government has already agreed upon. Intel was hoping to get some additional funds due to higher energy and construction costs, which appears to be something the company now has to cover out of its own pocket. Considering the estimated cost for the first plant in Magdeburg is estimated at €17 billion, it seems only fair that Intel should cover most of the cost of its new fab. Intel is planning to invest around US$88 billion in Europe over the next few years, which includes further expansions to its fab in Ireland, a packaging and assembly plant in Italy and an R&D facility in France.
Sources:
The Financial Times, via Reuters
Now it looks like Intel will have to make do with the already promised €6.8 billion that the German government has already agreed upon. Intel was hoping to get some additional funds due to higher energy and construction costs, which appears to be something the company now has to cover out of its own pocket. Considering the estimated cost for the first plant in Magdeburg is estimated at €17 billion, it seems only fair that Intel should cover most of the cost of its new fab. Intel is planning to invest around US$88 billion in Europe over the next few years, which includes further expansions to its fab in Ireland, a packaging and assembly plant in Italy and an R&D facility in France.
18 Comments on Germany Turns Down Intel's Request for More Fab Fund Subsidies
That says it all right there.
Not defending him or anything.
le: That german efficacy.
Germany was willing to give Intel the 6.8bil (in simple terms: ) to 'stimulate the economy/industry'.
Germany meanwhile and prior to, is doing all sorts of controversial stuff that (amongst many other consequences) has increased the price of energy. Thus, disincentivizing said industrial/economic-stimulus from foreign industry.
Is it just me, or does this look like a locksnake circling down a toilet?Eh.... Not incorrect, but it is and has been in vogue with 'successful' big biz.
/s