Intel Set to Get $5.5 Billion in German Subsidies for Plant
- Public funds would cover 30% of costs to build the site
- The money has to be approved by the European Commission
Photographer: Akos Stiller/Bloomberg
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Germany is looking to grant Intel Corp. more than 5 billion euros ($5.5 billion) in public funds to build a massive semiconductor plant, part of the European Union’s effort to build up domestic chip production, officials familiar with the negotiations said.
Intel will start work on a 17 billion euros ($18.7 billion) cutting-edge semiconductor production site in Magdeburg, Germany, the company said Tuesday. Intel and the country are still discussing the exact amount the chipmaker could receive, but officials familiar with the matter said the government plans to give more than 5 billion euros in state aid.