Germany does not want to increase subsidies for Intel to build a new plant from $7.34 billion to $10.8 billion

The German government is not eager to increase subsidies for Intel, which wants to build a plant

for the production of semiconductor products in Germany. This was stated by Finance Minister Christian Lindner.

What is known

The key reason is the lack of unnecessarymoney in the national budget. According to the minister, the budget should be reduced, not expanded. The only exception is spending on strengthening defense capabilities.

Intel intends to invest $88 billion inconstruction sites in Europe. A German plant will appear in Magdeburg. The construction cost is estimated at €17 billion ($18 billion). The American company wants to receive €10 billion ($10.8 billion) of subsidies, but the German authorities are ready to provide only €6.8 billion ($7.34 billion).

At the same time, Chancellor Olaf Scholz andGerman Economy Minister Robert Habeck supports the allocation of additional funding for the “blue” company. However, in this case, Intel must scale up.

Robert Habeck cites the Americanan initiative that involves the allocation of $ 52 billion to companies ready to build factories for the production of chips in the country. Major players, including Intel, Samsung, TSMC and Micron, intend to take advantage of this.