# Intel wants $5 billion more in German subsidies for chip plant – Bloomberg News
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-08
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Intel seeks additional 4-5 billion euros subsidy for chip
Meta Description: Intel Corp is reportedly seeking billions in additional subsidies from the German government to build a chip manufacturing complex, as part of its $88 billion
URL: https://financedigest.com/intel-wants-5-billion-more-in-german-subsidies-for-chip-plant-bloomberg-newshtml

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(Reuters) – Intel Corp is seeking an additional 4 billion to 5 billion euros ($5.28 billion) in subsidies from the German government to build a chip manufacturing complex in the country, Bloomberg News reported, citing people familiar with the matter.

The U.S. chipmaker last year postponed the plant construction in Magdeburg – for which it had reached a 6.8 [billion euro](https://www.financedigest.com/eu-seeks-clarification-on-italy-post-covid-plan-freezes-19-billion-euros.html "EU seeks clarification on Italy post-COVID plan, freezes 19 billion euros") deal in government subsidies, subject to approval from the European Commission – due to economic headwinds and is now looking for more aid, the report said on Tuesday.

Intel did not immediately respond to a Reuters request for comment.

The company in March 2022 picked Germany as the site for a huge new chipmaking complex, as part of an $88 billion investment drive across Europe, which included boosting an existing factory in Ireland, setting up a [design and research](https://www.financedigest.com/nvidia-shows-new-research-on-using-ai-to-improve-chip-designs.html "Nvidia shows new research on using AI to improve chip designs") facility in France, and a packaging and assembly site in Italy.

The initial spending was then estimated to total 33 [billion euros](https://www.financedigest.com/delivery-hero-ramps-up-interest-payments-to-raise-1-billion-euro-convertible-bond.html "Delivery Hero ramps up interest payments to raise 1 billion euro convertible bond"), including 17 billion euros in Germany. However, Bloomberg News [reported Intel now expects](https://www.financedigest.com/german-economy-expected-to-skirt-recession-economy-ministry-report.html "German economy expected to skirt recession – economy ministry report") to spend 30 billion euros in its project in Germany.

Intel was expecting roughly 40% of its Germany project to be subsidized, under the EU’s Chips Act, but is now also open to other sources of government aid including [tax breaks or energy](https://www.financedigest.com/britains-tax-take-risks-blowing-green-energy-off-target.html "Britain’s tax take risks blowing green energy off target") subsidies, the report added.

The expansion in Ireland and France, meanwhile, remains largely on track, the people told Bloomberg News.

($1 = 0.9478 euros)

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shinjini Ganguli)


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