Germany coughs up €6.8B for Intel fab

Intel will receive 6.8 billion euros in state support for the fab complex in Magdeburg, Bundestag member Martin Kröber told German media. That’s 40 percent of the 17-billion-euro initial investment announced by the chipmaker – the maximum allowed by the EU Chips Act. Previously, Economy Minister Robert Habeck revealed that Germany has set aside 14 billion euros in total to support semiconductor manufacturing. He said more examples like Intel will follow.

Construction of the Silicon Junction site in Magdeburg, consisting of two fabs initially, is estimated to start in H1 2023 and be completed in 2027. The manufacturing facility is the largest project in Intel’s grand scheme to infuse as much as 80 billion euros into the EU semiconductor value chain over the next decade. Others elements include upgrading the fab in Ireland, starting a new R&D hub in France and possibly building a back-end manufacturing facility in Italy.