As you know, there’s a plan for Intel to set up a chip production plant in Germany. The chosen site is Magdeburg, but a grain of sand has been put in the gears – what can I say? A pebble in the giant’s shoe! The consequences of the war in Ukraine (and sanctions) are already being felt.
Germany says ” nein” to Intel’s demand for additional subsidies!
Intel’s plan to set up shop in Germany is nothing new, as we told you back in june 2021. Since then, however, water has flowed under the bridge, and recent events, such as the war in Ukraine, have seriously complicated matters. Inflation, rising costs for energy and materials, and labor shortages are just some of the factors… All this is forcing Intel to revise its budget upwards.
Last March, for example, Intel asked the German government for additional subsidies. Initially, the company’s installation was subsidized to the tune of 6.8 billion euros. Recently, for the reasons outlined above, Intel asked for 10 billion euros.
The German Minister for Economic Affairs is only now responding, and his answer is as follows:
“We don’t have any more money available for the budget. We are currently trying to consolidate it, not expand it.”
Hard blow for Intel. It remains to be seen how the company will react, and what impact this decision will have on its European presence. Since this German site must be one of the most advanced in the world, capable of exploiting the 18A blueprint process. In-house, new-generation EUV (Extreme UltraViolet) lithography equipment is to be installed. In short, a matter to be followed, but it doesn’t look good.
