Today we learned that our European neighbor will finally subsidize Intel and that the construction of the chip factory can go ahead as planned.
10,000 million dollars
This will be the figure that Germany will ultimately have to put forward for the project to be completed. This plant will be located in the city of Magdeburg. Intel initially asked for 6,800 million dollars, but as the study progressed, the cost increased. A week ago, the leading chipmaker told the German government that it should be 10,000 millions What should they give them if they wanted the business to be located in their country? Germany said it would not back down because it was not the deal it reached in the first place.
Everything indicates that they have seen the wolf’s ears and think that the best and most profitable option for them is an investment in the future, like having a chip factory for a company like Intel in their country. They will pay the 10,000 million they need for its execution. With an estimated initial value of the total construction of 17,000 million dollars. The other part will be borne by Intel, since it could end up costing up to 30,000 million.
The words of German Chancellor Olaf Scholz were as follows:
It is good news that many companies are currently making big investment decisions regarding the semiconductor industry in Germany.
If all of these plans come to fruition, a lot of things will come together here. And with some we talk in detail.
Of course, although they have finally decided, they also demand that Intel remember this and invest and bet more on their country. Everything is not going to be given, they underlined from the German Ministry of the Economy.
On the other hand, the processor company is looking to expand further in Europe, its future plans include a research center in France and the expansion of its existing chip factory in Ireland. Although this is all a matter of time and patience, as increases in the cost of energy, fuel and the like have slowed down investment plans due to less budget they had for it. Surely they must ask, as in this case, that the countries themselves help them pay for all this. This is not a bad strategy, take advantage of your power and your strength so that they invest in you.
So far with Germany it’s gone well for them, although they promised they weren’t going to give in, they didn’t take a week to say yes. Its official announcement is however not made It is expected to be Monday when we know all the final details.
