Germany, Intel agree on huge chip plant subsidy

Big bucks: Scholz (standing, right) and Gelsinger (left) attend the signing with Kukies (seated, right) and Esfarjani. Under the deal for a new chip-making complex on German soil, Intel will invest billions helped by subsidies from the German government. — Reuters

BERLIN: Germany and Intel Corp sealed an agreement for the US company to receive an enlarged subsidy package worth about €10bil (US$10.9bil or RM50.4bil) for a semiconductor facility in the former communist east, according to people familiar with the deal.

Intel confirmed the agreement on Monday without providing a specific amount for the financial aid. It said it plans to invest around €30bil (RM152bil) in the “leading-edge wafer fabrication site” in Magdeburg, which Chancellor Olaf Scholz said represents “the single largest foreign direct investment in German history”.