Intel Asks For 10Bln Euros In State Aid To Build Chip Factory In Germany - Reports

BBERLIN (UrduPoint News / Sputnik - 09th February, 2023) The world's largest computer components manufacturer, Intel, has requested the German government to provide 3 billion Euros ($3.22 billion) to already approved 6.8 billion euros for the construction of a chip factory in Germany amid anti-inflationary measures, the Handelsblatt newspaper reported on Wednesday, citing government sources.

Media reported in March that Intel would build a new chip factory in the city of Magdeburg. However, in December, the company postponed the start of construction, scheduled for the first half of 2023, citing insufficient funding due to rising inflation and increasing prices of energy and building materials as the reason.

According to the report, the meeting between the company's representatives and the German government was held several weeks ago, and the discussion on additional funding will take place as early as Friday.

According to insiders, the delay in the construction was caused by the company's intention to implement a different and more modern way of manufacturing chips at the factory using machines from the Netherlands but not rising inflation and prices.

In September, German Chancellor Olaf Scholz said that the production of semiconductors would be established in Europe, including in Germany, as a part of the national security strategy, which would allow getting rid of dependence on imports of chips.