Intel said to be close to deal worth $10.8B in subsidies for German chip plant
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Intel (NASDAQ:INTC) is reportedly close to a deal with the German government to receive up to $10.8B in subsidies for a new manufacturing plant in the country.
Citing government sources, German news outlet Handelsblatt reported that Intel (INTC) and the German government have "largely agreed" upon an increase in state funds for a planned factory in Magdeburg, resulting in the U.S. chip giant getting 9.9B Euros, up from a previous 6.8B Euros.
The news outlet added that final negotiations are slated to take place this weekend with Intel (INTC) CEO Pat Gelsinger and German government officials set to sign a deal early next week.
In February, it was reported that Intel (INTC) believed the added subsidies were "necessary" for the plant due to higher energy costs and the use of more advanced technology inside the plant.
Santa Clara, California-based Intel (INTC) did not immediately respond to a request for comment from Seeking Alpha.
Intel (INTC) shares rose nearly 1% in late trading on Thursday.
Late last year, it was reported that Intel (INTC) had slowed its plans for the Magdeburg plant and was in the process of asking for more subsidies.
Intel's (INTC) plant in Magdeburg is part of the chip giant's plan to invest $88B in Europe for manufacturing purposes over the next decade.
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