Intel Planning to Build Chip Factory in Bavaria Germany

[Uskompuf]

Intel is in talks with the German government to build a European chip factory hoping to counter the global chip shortages and help achieve the EU local chip manufacturing target. Germany is interested in attracting semiconductor companies to increase domestic chip production to improve security for their automotive industry which increasingly relies on foreign chips. Intel wants to open up manufacturing capacity at their foundries to external companies allowing them to compete with TSMC and Samsung in the high-end market. Intel is seeking large subsidies from the German government to the tune of several billion to help make the new factory a reality.



View at TechPowerUp Main Site

 

[matar]

Want an intel i9 with AMG.

 

[AusWolf]

"Intel is seeking large subsidies from the German government to the tune of several billion to help make the new factory a reality."

Let me rephrase the title: "The German government planning to build Intel chip factory in Bavaria"

 

[TomTomTom]

thats what Intel does, it doesn't build anything without some cash incentives. in return, they promise to create jobs and generate income tax revenue but in reality, with additional tax breaks, thy pay less company tax and the net outcome is less money for the government.

 

[Caring1]

"Intel is seeking large subsidies from the German government to the tune of several billion to help make the new factory a reality."

Let me rephrase the title: "The German government planning to build Intel chip factory in Bavaria"

Let me rephrase that: Intel is seeking large bribe from the German Government to build Chip factory in Bavaria.

 

[Anymal]

Germany bribes Intel to make chips for VW, Mercedes and BMW. What about STmicroelectronics?

 

[TumbleGeorge]

Is this first time in history when private company earns budget money? It is called draining budget funds and undoubtedly Intel and the responsible officials will share money under the table.

 

[R0H1T]

Let me rephrase that: Intel is seeking large bribe from the German Government to build Chip factory in Bavaria.

Nah, they obviously want Roman to OC every chip coming out of their factory

 

[TheLostSwede]

"Intel is seeking large subsidies from the German government to the tune of several billion to help make the new factory a reality."

Let me rephrase the title: "The German government planning to build Intel chip factory in Bavaria"

Free beer for life?

 

[persondb]

thats what Intel does, it doesn't build anything without some cash incentives. in return, they promise to create jobs and generate income tax revenue but in reality, with additional tax breaks, thy pay less company tax and the net outcome is less money for the government.

All big semiconductor manufacturers do that. Very very common in Asia, and people even pointed that out when saying that stuff like CHIPS for America act needed to be just the start.

And for the government, it's called "investment", since a big project like this can create a lot of direct and indirect jobs as well as other local companies to supply the fab demands. So regardless, it's a net positive for the government.

 

[TheGuruStud]

All big semiconductor manufacturers do that. Very very common in Asia, and people even pointed that out when saying that stuff like CHIPS for America act needed to be just the start.

And for the government, it's called "investment", since a big project like this can create a lot of direct and indirect jobs as well as other local companies to supply the fab demands. So regardless, it's a net positive for the government.

No, it's called, "where's our bribes?"

 

[mtcn77]

I think we talked over this in the same topic dedicated to, "Samsung" that Germans have a special relationship with the semiconductor industry. They are innovative people.

 

[Why_Me]

No, it's called, "where's our bribes?"

Germany relies heavily on its auto industry as does the US and Japan. The chip makers know this so they're going to bargain for the best deal. After this virus thing local microchip plants are more important than ever. The US literally has thousands of new automobiles that are awaiting microchips before they can be sent out to the dealerships.

Japan wants TSMC, Sony to build 20 nanometre chip plant -Nikkan Kogyo

Japan's government wants Taiwan Semiconductor Manufacturing Co Ltd (2330.TW) and Sony Group (6758.T) to invest 1 trillion yen ($9.2 billion) to build the country's first 20 nanometre chip plant, the Nikkan Kogyo newspaper reported on Wednesday.

www.reuters.com

 

[ThomasEichorst]

if ya want subsidies intel, judenrepublik is the best place to go! subsidies is their second name

 

[Jism]

thats what Intel does, it doesn't build anything without some cash incentives. in return, they promise to create jobs and generate income tax revenue but in reality, with additional tax breaks, thy pay less company tax and the net outcome is less money for the government.

Exactly. And it's just playing around which country has the best terms and conditions.

 

[Why_Me]

Exactly. And it's just playing around which country has the best terms and conditions.

No idea about Germany, but in the US the govt. takes federal taxes out of worker's paychecks. That and those workers spend money as in purchasing houses, automobiles, etc ... not to mention local taxes.

 

[Anymal]

In EU salaries are taxed 16% or more and also everything that you buy with remaining salary is taxed 19% in Germany, 22% in Slovenia, books and some exceptions are 8.5%. Double strike.

 

[64K]

Intel doesn't need a hand-out from the German government. They make billions of dollars in profit every quarter and the have around 22 billion in cash on hand.

 

[AusWolf]

No idea about Germany, but in the US the govt. takes federal taxes out of worker's paychecks. That and those workers spend money as in purchasing houses, automobiles, etc ... not to mention local taxes.

Isn't that the same in every country?

 

[R-T-B]

Let me rephrase that: Intel is seeking large bribe from the German Government to build Chip factory in Bavaria.

Your confused. It's only a bribe if it goes towards the government for a benefit. The government giving out money for cordial relations with big buisness happens all the time, and they have a different word for it:

"Incentives"

Isn't that the same in every country?

Pretty much, but the US spends big money on making our tax code confusing.

 

[persondb]

Intel doesn't need a hand-out from the German government. They make billions of dollars in profit every quarter and the have around 22 billion in cash on hand.

They don't need hand outs, but do they need to build a new fab in Germany? They can choose any place in the world...

That's, you see, the point. For those things, it's not supposed to be a one way deal where only one party benefits, but instead both Germany and Intel would benefit.

A lot of money/incentives will probably come from taxes reliefs, lands and such instead of just straight cash too.

 

[Why_Me]

Isn't that the same in every country?

I was trying to make a point seeing how a lot of posters on here come across as completely oblivious to the fact Germany relies heavily on its automobile industry and those automobiles need microchips. The Germans, Japanese and Americans learned the hard way that a world wide virus can shut down the supply chain.

 

[64K]

It cost billions to build a megafab if that's what they are planning and that alone will create a lot for Germany's economy in terms of jobs. How long will it take the German government to recoup that loss through taxes?

 

[Chomiq]

thats what Intel does, it doesn't build anything without some cash incentives. in return, they promise to create jobs and generate income tax revenue but in reality, with additional tax breaks, thy pay less company tax and the net outcome is less money for the government.

Germany is more concerned about their automotive industry than "less money" from Intel. Having a local fab will help secure them from potential shortages. And this probably applies to other branches of their pretty high tech industry.