Germany's Finance Minister, Christian Lindner, refuses Intel's demands for higher subsidies for the construction of a chip plant.
The company was originally granted €6.8 billion in government support but is now requesting around €10 billion due to rising energy and construction costs.
Germany emphasizes the need to consolidate the budget rather than expand it and is unable to meet the additional financial demands.
Budget Constraints Reached: Germany Refuses to Meet Intel's Calls for Increased Subsidies for Chip Plant.
Intel's demands for higher subsidies for chip plant face resistance from Germany's Finance Minister, Christian Lindner; Image: Made in Bocholt
More and more chipmakers, including Intel, are seeking government support to build factories in Europe. However, the German government faces a difficult decision. As reported by the Financial Times, Germany's Finance Minister, Christian Lindner, rejects Intel's calls for higher subsidies for the construction of a chip plant.
Originally, the company was promised €6.8 billion in government support for building its plant in Germany. However, due to rising energy and construction costs, Intel is now demanding around €10 billion. Finance Minister Lindner emphasized in an interview with the newspaper that there is no room for additional expenditures in the budget and that the government is currently focused on consolidating it.
Last year, Intel announced its selection of Magdeburg, a central German city, as the location for a new chip-making complex. This is part of an €88 billion investment drive across Europe, which also includes expanding a factory in Ireland, establishing a packaging and assembly site in Italy, and setting up a design and research facility in France.
Germany's decision to resist Intel's financial demands raises questions about how this will impact the company's future investments. It is expected that Intel and other chipmakers will continue to seek government support to expand their manufacturing capacities in Europe.
Germany's rejection of higher subsidies marks a turning point in the negotiations between Intel and the German government. The future of the planned chip complex in Magdeburg is now at stake, while the debate over government support for the high-tech industry in Europe continues.
