Intel in Europe? Things are not done yet; simply because the blue giant increases its bill. Indeed, the offer goes from 6.8 billion euros 8 months ago to 10 billion now. The main cause is the increase in energy costs and a decrease in the company’s revenues.
Intel is now asking Germany for 10 billion euros to set up in Magdeburg!
Finally, the most important information to remember in all this is the increase in costs estimated by Intel. Indeed, the bill will finally increase from 6.8 billion euros to 10 billion according to the new estimates of the company. The reason behind this is mainly related to the energy costs that have exploded recently. This reason is related to the war in Ukraine (and especially decisions arising from it) between the embargoes on Russian gas and oil, the explosion of the Nord Stream pipelines … All conditions are met to increase the bills.
And yet, energy is needed to run a plant of this magnitude. Especially since the blue plans to launch into the production of more advanced nodes than initially planned. For this, the company wants to acquire a more expensive High-NA EUV machine. In this regard, we imagine that the severe competition imposed by AMD, but also by ARM forces Intel to increase its investments.
Finally, the brand has already allocated no less than 17 billion euros for the construction of two factories. Eventually, this number could increase to 8, all in the city of Magdeburg. Finally, for that, the German government must agree to pay the bill.
