‘Germany and Intel are approaching agreement on billions of extra subsidies for chip factory’ – IT Pro – News

In line with these concerned, the German authorities and Intel are near an settlement on a subsidy of 9.9 billion euros for the development of a sophisticated chip manufacturing unit. Earlier, a subsidy of 6.8 billion euros was already promised, however the chip producer discovered that too little.

The German Handelsblatt writes this on the authority of these concerned throughout the authorities and thus contradicts an official assertion by Finance Minister Christian Lindner. Just a few days in the past stated the minister that there is no such thing as a price range to spend nearly ten billion euros on the development of the chip manufacturing unit. Nonetheless, Minister of Financial Affairs Robert Habeck has been working arduous these days to carry in regards to the related subsidy improve.

In line with the identical sources, the ultimate negotiations between Intel and the German authorities will happen this weekend. Subsequently, CEO Pat Gelsinger was as a consequence of come to parliament on Monday to signal the binding settlement.

Final 12 months grew to become recognized that Germany would give a 6.8 billion euro authorities subsidy to Intel for the development of a chip manufacturing unit within the German metropolis of Magdeburg. Later nevertheless, Intel revised its subsidy necessities upwards. The producer did this partly as a result of the costs of building and power prices have risen. In line with the producer, this has created a ‘value hole’.

Surprisingly, Pat Gelsinger stated final 12 months throughout a Q&A session with European media that power costs had been ‘not a figuring out issue’ for the development of a German chip manufacturing unit. The CEO stated that the supply of power was necessary. “In fact we use power, however that’s not the largest expense of a manufacturing unit,” stated the CEO in September. “That is extra the price of the tools and the constructing. In fact we’re involved in regards to the results of inflation, however the power worth just isn’t the figuring out issue for us.”