2023-06-19 16:15:46
Berlin agreed on Monday to give US chip maker Intel regarding a third of the cost of a 30 billion euro factory it will build in Germany, following months of talks.
Government sources told AFP that Berlin will provide 9.9 billion euros to support the project in the eastern city of Magdeburg, up from the 6.8 billion agreed upon last year.
In March 2022, Intel unveiled the huge project that is at the core of European investment plans, while the European Union seeks to boost the production of semiconductors used in everything from combat aircraft to smartphones, and reduce dependence on Asia, following production was disrupted in a chain. from the industrial sectors due to the shortage caused by the pandemic; The Russo-Ukrainian war also highlighted the dangers of over-reliance on the outside.
Construction work on the Intel project was due to begin in the first half of this year, but was halted following the Ukraine war fueled inflation.
After that, German officials and the company began talks that lasted for several months, until the two sides signed an agreement on Monday that included increased subsidies.
Government sources said that the project will currently cost 30 billion euros instead of 17 billion euros.
Chancellor Olaf Scholz, at the signing ceremony with Intel CEO Pat Gelsinger, hailed the agreement as “the largest foreign direct investment in German history” from a single company.
Last week, Intel announced that it intends to invest up to $4.6 billion to build a new facility in Poland that will provide regarding 2,000 jobs.
The company said in a statement that the new facility, which will be located in Wroclaw, “will help meet the strong demand for assembly and testing that Intel expects by 2027.”
She added that the investment aims to help the EU build a more resilient semiconductor supply chain.
The European Union aims to produce 20 percent of the world’s semiconductors by 2030, and has invested in chip facilities in Germany and Ireland to boost its production.
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