The German government plans to promote with 9,900 million euros (10,800 million dollars) the establishment of plants of the American chip manufacturer Intel in the east of the country, as learned on Monday dpa.
This means that Intel, including state aid, will invest more than 30 billion euros in the project. However, the increase in state aid must be approved by the Commission of the European Union.
Intel announced in March 2022 the intention to produce chips in the city of Magdeburg, capital of the federal state of Saxony-Anhalt, starting in 2027.
According to plans, in a first phase of expansion, two semiconductor plants will be built, and several thousand jobs could be created. In addition, a high-tech park is planned for the settlement of suppliers.
Intel initially stated that it would invest at least 17 billion euros in Magdeburg. However, the investment becomes more expensive due to the increase in construction and energy costs.
In addition, the company wants to use even more modern technologies for the production of chips. In total, Intel will almost double its investments, according to government sources. Aid from the Government of Chancellor Olaf Scholz will increase from 6,800 to 9,900 million euros.
Representatives of the German government and the company signed an agreement in Berlin this Monday. Scholz has previously scheduled a meeting with Intel CEO Pat Gelsinger.
The German government and the chipmaker have been negotiating intensively on the amount of state aid until the end. In the meantime, archaeological investigations and preparatory work for construction on the Magdeburg site are already underway.
Source: dpa
(Reference image source: Slejven Djurakovic, Unsplash)
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