Intel’s fab, due near Magdeburg, Germany, promises to be Europe’s largest and most advanced semiconductor manufacturing facility, but costs are rising and Intel recently received more funding from the country’s government. He expressed his desire to receive a subsidy. However, authorities are reportedly reluctant to provide more funding to the company because the budget is short of money. financial times.
German Finance Minister Christian Lindner told the Financial Times that “there is no more money in the budget”. “We are now trying to consolidate rather than expand the budget.”
Intel’s planned factory near Magdeburg, Germany, was initially estimated to cost $18.7 billion (€30 billion), but the federal government will provide state aid to the semiconductor giant of about $7.2 billion. Agreed. However, construction of the factory has been delayed, and rising energy prices, material costs and inflation are now expected to cost the production facility around $31.675 billion (€30 billion), which Intel is likely more advanced. This is thought to be due to the decision to introduce an effective tool. Aiming to produce chips at more sophisticated production nodes in Germany. To fill this funding gap, the company is asking the German government for additional subsidies of $4.223-5.279 billion (€4-5 billion).
The dispute over subsidies to Intel has split officials. Prime Minister Olaf Scholz and Economy Minister Robert Habeck are believed to be open to increasing financial support for Intel, encouraged by the prospect of an increase in Intel’s total investment from €17 billion to €30 billion. But Christian Lindner is against such subsidies, arguing that the prime minister and the economy ministry need to identify where the additional money will come from.
Some German economists argue that the subsidies are a waste of taxpayer money, but given the complexity of the semiconductor supply chain, reducing the chip industry’s reliance on Asian suppliers is the Some people worry that it will be difficult.
Intel declined to comment on the minister’s comments, but said it “has a cost gap and is working with the government on how to close it.”
Lindner’s opposition to subsidies isn’t limited to Intel. Lindner also opposed Habeck’s plan to subsidize electricity bills for energy-intensive industries and the legality of such state aid under EU regulations. Meanwhile, lower electricity costs could also help Intel’s factory near Magdeburg. Habek reportedly suggested that funding for these subsidies could come from the Economic Stabilization Fund, but Lindner dismissed the proposal as a violation of the coalition agreement.
