Intel may receive 6,800 million euros from Germany to subsidize its factories

Deepak Gupta June 15, 2022
Updated 2022/06/15 at 9:26 PM

It is no longer surprising to anyone that the various manufacturers want to expand their activity, namely on European soil. Names such as the North American Intel and the Taiwanese TSMC are the main stakeholders in this bet.

And, according to the latest information, Intel could receive 6,800 million euros from Germany to subsidize its factories.

Intel will receive €6,800 million from Germany for its factories

According to the most recent information, Germany will allocate 6,800 million euros in subsidies to Intel. The objective is to help the US manufacturer pay for part of the construction of its chip factory that it will build in the German city of Magdeburg. The intention to implement its facilities here was revealed in February of this year.

This new factory will then be Intel's second on European soil, as it already has one in Ireland. And these new facilities will be accompanied by two additional factories.

Some communication channels also state that about 2,700 million euros are already reserved, and are part of the government budget for this year 2022. And the remaining amount will be applied to the 2023 and 2024 budgets.

It is estimated that, in a first phase of the project, Intel's facilities in Magdeburg will have two nearby factories, which will occupy the equivalent of two football stadiums of world dimensions. With this construction, the company expects to create around 3,000 permanent jobs dedicated to high technology and tens of thousands of additional jobs within the scope of suppliers and partners.

According to the details, the construction of the factories in the German city is expected to start in the first half of 2023, and the manufacture of chips in them, through state-of-the-art processes, is expected for the year 2027.

This information comes at a time when Taiwanese rival TSMC has come to say that it has no plans to build factories in Europe.

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