Intel considers the planned chip factory in Magdeburg to need funding of almost ten billion euros

Berlin, Munich Germany’s race to catch up in chip production could be much more expensive for taxpayers than expected. According to information from the Handelsblatt, the US group Intel now needs federal subsidies of almost ten billion euros for its planned plants in Magdeburg. This was reported by several government officials unanimously. So far, Berlin has only pledged 6.8 billion.

Intel’s announcement in March last year that it would build a state-of-the-art chip factory in the middle of eastern Germany caused euphoria in the region and in the federal government. It was said at the time that the world’s second largest chip manufacturer wanted to invest 17 billion euros in Magdeburg. Including suppliers, a total of 10,000 jobs could be created.

But in the meantime, the settlement in Germany threatens to shake. The USA, in particular, is luring chip manufacturers into the country with enormous subsidies and advertising with a cheap energy supply.