The logo of the chip manufacturer Intel stands in front of the company's headquarters. © Andrej Sokolow/dpa/Archive
In view of rising costs, US chip manufacturer Intel says it is negotiating with the German government on the scope of financial aid. "We are working closely with the German government to close the existing cost gap," an Intel spokesperson said on Thursday. Since the announcement that several chip production factories would be built in Magdeburg, a lot has changed:
Magdeburg/Berlin - "Geopolitical challenges have grown, global demand for semiconductors has fallen and increased construction costs, energy prices and inflation are challenging the global economy."
According to reports, Intel is demanding 10 billion euros in financial aid from the federal government in the ongoing talks instead of the 6.8 billion euros promised so far. First, the "Handelsblatt" had reported that the U.S. company expected higher costs for its plant.
In March 2022, Intel announced that the latest generation of chips would be produced in Saxony-Anhalt's state capital from 2027. In a first expansion stage, two semiconductor plants are to be built, and several thousand jobs could be created. At the time, Intel had stated the investment sum at at least 17 billion euros.
This week and next week there will be further talks between the federal government and Intel. The federal government wants to tie an increase in funds to certain conditions, according to negotiating circles. Intel says it is sticking to a start of construction in 2024. Archaeological investigations and preparatory work for construction are currently underway on the site in Magdeburg. Dpa