Intel, German government set to announce €10B chip plant subsidy deal - report
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Intel (NASDAQ:INTC) has locked an agreement with the German government to receive subsidies worth â¬10B (~$10.9B) for a semiconductor manufacturing facility in the country, Bloomberg reported, citing people with knowledge of the matter.
German Chancellor Olaf Scholz and Intel CEO Pat Gelsinger will attend a ceremony for signing 2:45 p.m. in Berlin, the report added citing an email from the German government.
There were no details related to the agreement in the statement, besides details on the people who will ink the pact, according to the report.
Last week it was reported that the U.S. chipmaker was close to signing the agreement and the German government having "largely agreed" to increase in state funds for a planned factory in Magdeburg, resulting in Intel getting â¬9.9B, up from a previous â¬6.8B.
The boosted package now agreed upon will include both traditional aid in the form of financial subsidies, and price caps on energy, the report noted.
Last year, Intel said that it expected to invest â¬17B in the semiconductor mega-fab in Magdeburg, but now expects to spend â¬30B.
Intel was expecting about 40% of its costs to be subsidized, the report noted citing the sources, like several projects which would receive government funding via the European Unionâs Chips Act.
Last week, Intel announced that it is planning to invest up to $4.6B to set up a semiconductor assembly and test facility near WrocÅaw, Poland, to help the EU work toward its goal of a more resilient semiconductor supply chain.
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