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Intel (INTC) denied increased German national funding for chip megafab

Intel was denied 10 billion Euros in requested funding on top of the 6.8 billion that the German government already been approved for its Magdeburg fabrication plant.

TJ Denzer

June 12, 2023 2:25 PM

Image via DadoRuvic/Reuters

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It would appear that Intel has hit a roadblock on the way to building a major chip fabrication plant in Germany. The company asked the government for additional funding to build its planned chip megafab in Magdeburg, but Germany’s finance minister has stated that they are against the funding. Intel was looking for 10 billion Euros on top of 6.8 billion that was already approved for the chip megafab’s construction. It looks like it will be unable to get that funding for the time being.

Germany’s response to Intel’s request for additional funding for its Magdeburg plan was originally reported by the Financial Times, to which Germany's finance minister Christian Lindner spoke.

“There is no more money available in the budget,” Lindner told Financial Times. “[Germany is] trying to consolidate the budget right now, not expand it.”

Lindner and the rest of the German government are not necessarily in agreement on the complete shutdown of additional funding, with notable opposition Chancellor Olaf Scholz arguing that Intel’s chip fabrication plant was a “high priority” for the government. Nonetheless, as the government attempts to plan its next year’s budget, it looks like Intel may not be getting the 10 billion Euros it has asked for.

It was earlier this year that Intel reported it was seeking additional funding from the German government for the building of its plant, which it estimated would cost 17 billion euros back in March 2022. Even so, with 6.8 billion euros already squared away the German government has also toyed with different ideas to aid Intel in the building of its plant, such as reducing the cost of its electricity.

Nonetheless, it looks like Intel may have to make due with the funding that has been allocated to it. Stay tuned as we continue to follow this story for further updates.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.