Intel Set to Gain $11 Billion Subsidy for German Chip Plant

  • Germany has expressed willingness to grant more aid in talks
  • Announcement on more subsidies may come as soon as Monday
A rendering of Intel’s early plans for two new processor plants in Magdeburg.
Lock
This article is for subscribers only.

Intel Corp. is set to receive almost $11 billion in subsidies from the German government for a chip manufacturing complex in the eastern part of the country, according to people familiar with the matter.

The company postponed the start of construction at the plant — which it had previously agreed to build in Magdeburg with €6.8 billion ($7.2 billion) in government aid — at the end of last year because of economic headwinds and had been asking for more funds, people with knowledge of the situation said. Germany has now expressed a willingness to grant roughly €10 billion as part of negotiations, people said, asking not to be identified because the information isn’t public.