Germany, Intel Agree Subsidies for Chip Plant Worth €10 Billion.

#Germany and #Intel Corp. sealed an agreement for the US company to receive #subsidies worth €10 billion ($10.9 billion) for a semiconductor manufacturing facility in the eastern part of the country, according to people familiar with the deal.

Intel initially agreed to build the facility in the city of #Magdeburg with €6.8 billion in #government #aid but postponed the start of construction at the plant because of economic headwinds.

The enhanced package now agreed will include both traditional aid in the form of financial subsidies as well as price caps on energy, according to the people.

Intel said the site is expected to create 7,000 construction jobs during the initial construction phase, as well as around 3,000 permanent high-tech jobs and tens of thousands of additional positions “across the industry ecosystem.”

Under Gelsinger, Intel has embarked on a huge expansion program aimed at recapturing its previous dominance of the industry and diversifying manufacturing hubs for critical components, currently concentrated in East Asia.

#Capitalism #Handouts #Economy #Politics #EU #Europe
https://www.bloomberg.com/news/articles/2023-06-19/germany-intel-agree-subsidies-for-chip-plant-worth-10-billion#xj4y7vzkg