Intel again takes the collection box to the federal government to build a chip factory. The chipmaker assumes that he will need an additional four to five billion euros.

The construction plans for the chip factory in Magdeburg were announced more than a year ago, but the first stone has yet to be laid. Intel is in intensive negotiations with the federal government about the financing of the project. The construction of the factory could cost around twenty billion euros, Intel itself does not want to raise this sum.

The federal government has already crossed the bridge with 6.7 billion euros, but that’s not enough for Intel, also because the costs threaten to be higher than originally planned. A month ago we wrote that Intel is demanding 3.2 billion euros in subsidies from Germany. This demand has already been increased to four to five billion euros, Bloomberg knows.

Invaluable for Europe

Intel is holding back for the time being and only wants to start building the factory when the federal government provides the required funds. It is still unclear whether Germany will also react to this. Germany will probably also look towards the European Union to make a contribution.

Building a European chip factory is invaluable for the EU’s chip law, which aims to bring 20 percent of the world’s chip production to Europe. So Intel knows all too well that they are in a favorable position at the negotiating table. The big problem, however, is that Europe itself is having trouble filling its piggy bank.

Overall, Intel wants to invest 29 billion US dollars on European soil. In addition to the plant in Magdeburg, other locations in Ireland are also on the table. But Intel isn’t faring so well financially: Recent financial results have been abysmal. It is therefore not surprising that the chip manufacturer is so openly fishing for more subsidies in order not to have to pay for the expensive factory out of their own pocket.