Intel angles for more subsidies to build German mega-fab

Intel has said it remains committed to the construction of its planned chip manufacturing plant in Germany, just weeks after a company spokesperson said the project was on hold. According to Intel's Chief Global Operations Officer (CGOO) it still intends to build the chip fabrication plant and is now working out the final …

[codejunky]

Also

Unfortunately in the UK Rishi is being told we need to attract them here. Hopefully he doesnt copy the US and EU with subsidies.

[Pascal Monett]

"it will build once 'funding' worked out"

No problem, Intel. How much money do you have in the bank ?

It would be interesting to see how companies would react if they had to fork over a share of the profits based on how much subsidies they were offered.

Like : "Okay, you say it will cost $10 billion to build this plant. We can offer you $7.5 billion. Then you will pay us 75% of revenue over ten years."

Of course, that scenario only works if every government does the same. Might as well wait for pigs to fly.

[ratonahat]

Why not build it in Asia

Asian governments (Japan, South Korea, Taiwan) are offering 40-50% subsidies. Also, the cost to build there is cheaper and has access to top talents. From a pure business standpoint, it boggles my mind that Intel is trying to go against the flow and build factories in EU and US. Why not just get the subsidies from Japan or Korea and build there? Asian companies like TSMC and Samsung were successful while the Global Foundries in New York gave up on leading edge node development.

By the way, China is providing even more subsidies (60-65%) but it is risky to build there due to sanctions. But Japan, South Korea, and Taiwan are our allies and so companies like Samsung, TSMC, and a hypothetical Asian Intel won't get sanctioned.

[steamnut]

Turndown

With the chip demand turndown then the EU's grand scheme will probably be abandoned so the subsidies will evaporate.

I predict that Intel's US plans will be subject to a serious review now.