Germany and Intel reach agreement on chip factory – 06/19/2023 – Market

Germany will give Intel 10 billion euros ($12.1 billion) in subsidies for a chip factory in Magdeburg, a source familiar with the matter said, a move ending months of negotiations over a project expected to be worth around 30 euros. billion euros (R$ 156.5 billion).

Under Chief Executive Pat Gelsinger, Intel has invested billions in building factories on three continents to restore its chip-making dominance and better compete with rivals AMD, Nvidia and Samsung.

The German deal will be Intel’s third major investment in four days, following a $4.6 billion chip factory in Poland and a $25 billion plant in Germany. 4 billion) in Israel.

The company plans to invest around 30 billion euros in the Magdeburg plant, the source said.

Germany scheduled the signing of an agreement with Intel this Monday (19) and both Chancellor Olaf Scholz and Gelsinger will be present for the ceremony, the chancellery said in a statement.

Scholz said on Monday that his government was working on investment projects that would make Germany one of the world’s top locations for semiconductor production.

Berlin is also currently in talks with TSMC and Swedish EV battery maker Northvolt about establishing production in Germany, having already convinced Tesla to build a gigafactory in the country.