Germany, Intel Agree €10 Billion Subsidy Package for Chip Plant

  • Package to include both financial aid, caps on energy prices
  • Site is largest foreign direct investment in German history
A rendering of Intel’s early plans for two new processor plants in Magdeburg.

Source: Intel Corp.

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Germany and Intel Corp. sealed an agreement for the US company to receive an enlarged subsidy package worth about €10 billion ($10.9 billion) for a semiconductor facility in the former communist east, according to people familiar with the deal.

Intel confirmed the accord Monday without providing a specific amount for the financial aid. It said it plans to invest around €30 billion in the “leading-edge wafer fabrication site” in Magdeburg, which Chancellor Olaf Scholz said represents “the single largest foreign direct investment in German history.”