{"id":570427,"date":"2023-04-14T15:03:25","date_gmt":"2023-04-14T12:03:25","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/germany-and-intel-in-funding-dispute-over-e17bn-chip-plant\/"},"modified":"2023-04-14T15:03:25","modified_gmt":"2023-04-14T12:03:25","slug":"germany-and-intel-in-funding-dispute-over-e17bn-chip-plant","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/germany-and-intel-in-funding-dispute-over-e17bn-chip-plant\/","title":{"rendered":"#Germany and Intel in funding dispute over \u20ac17bn chip plant"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3b59a315679\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3b59a315679\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/germany-and-intel-in-funding-dispute-over-e17bn-chip-plant\/#The\" >The &lt;3 of EU tech<\/a><\/li><\/ul><\/nav><\/div>\n<div id=\"article-main-content\">\n                            <span style=\"font-weight: 400;\">Intel\u2019s plan to construct a massive chip plant in Magdeburg, Germany, is arguably the centrepiece of the EU\u2019s strategy to ramp up domestic production of semiconductors.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But cash flow has proven to be a major stumbling block for the mega-project. Intel attributes this to rising costs, partly a result of Russia\u2019s invasion of Ukraine.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To close the funding gap, last month, the US semiconductor giant <\/span><span style=\"font-weight: 400;\">requested<\/span><span style=\"font-weight: 400;\"> an additional <\/span><span style=\"font-weight: 400;\">\u20ac<\/span><span style=\"font-weight: 400;\">4-5 billion euros in subsidies <\/span><span style=\"font-weight: 400;\">to construct the plant.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But German officials want Intel to meet them in the middle \u2014 they will consider boosting subsidies, but only if the company is willing to spend more on infrastructure.\u00a0<\/span><\/p>\n<div class=\"inarticle-wrapper latest channel-cta hs-embed-tnw\">\n<div id=\"hs-embed-tnw\" class=\"channel-cta-wrapper\">\n<div class=\"channel-cta-img\"><img decoding=\"async\" class=\"js-lazy\" src=\"https:\/\/s3.amazonaws.com\/events.tnw\/hardfork-2018\/uploads\/visuals\/tnw-newsletter.png\"\/><\/div>\n<p><noscript><img decoding=\"async\" src=\"https:\/\/s3.amazonaws.com\/events.tnw\/hardfork-2018\/uploads\/visuals\/tnw-newsletter.png\"\/><\/noscript><\/p>\n<div class=\"channel-cta-input\">\n<h2 class=\"channel-cta-title\"><span class=\"ez-toc-section\" id=\"The\"><\/span>The &lt;3 of EU tech<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"channel-cta-tagline\">The latest rumblings from the EU tech scene, a story from our wise ol&#8217; founder Boris, and some questionable AI art. It&#8217;s free, every week, in your inbox. Sign up now!<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><span style=\"font-weight: 400;\">\u201cIt\u2019s logical that if the scale of the investment is increased, then the level of subsidy would also rise,\u201d Sven Schultze, the economy minister for Saxony-Anhalt, <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/ba5aa0c8-76a3-4241-88cc-b88b1d8dc0de\"><span style=\"font-weight: 400;\">told<\/span><\/a><span style=\"font-weight: 400;\"> the <\/span><i><span style=\"font-weight: 400;\">Financial Times<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Intel had initially estimated that the project would cost \u20ac17 billion and had reached an agreement for \u20ac6.8 billion in government subsidies. Now, however, the company expects to spend \u20ac20 billion, citing rising energy and construction costs.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Construction of the chip plant has already been <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.politico.eu\/article\/intel-backs-out-of-planned-construction-start-date-for-chip-plant-in-germany-report%EF%BF%BC\/\"><span style=\"font-weight: 400;\">delayed<\/span><\/a><span style=\"font-weight: 400;\">, and resolving the funding dispute will be critical if Intel is to deliver on its broader plans to invest \u20ac80 billion over the next decade into the EU\u2019s semiconductor industry.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While it may seem a simple matter of throwing a few billions more at the project, the chipmaker is facing serious cash flow problems. Late last year, Intel CEO Pat Gelsinger, said the company would <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2023\/01\/27\/intel-stock-tumbles-after-brutal-quarter-full-year-results.html\"><span style=\"font-weight: 400;\">cut<\/span><\/a><span style=\"font-weight: 400;\"> as much as $10 billion in annual spending by 2025.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The German ministry <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/ba5aa0c8-76a3-4241-88cc-b88b1d8dc0de\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> it is currently discussing ways to fill the project\u2019s cost gap. It also added that any additional funding would likely need <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roval from the European Commission first.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additional subsidies for the project could come from the European Chips Act, which aims to mobilise more than \u20ac43 billion to end Europe\u2019s dependence on China and produce 20% of the world\u2019s semiconductors by 2030.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The act is <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/technology\/eu-countries-lawmakers-likely-clinch-deal-chips-act-april-18-sources-2023-04-05\/\"><span style=\"font-weight: 400;\">expected<\/span><\/a><span style=\"font-weight: 400;\"> to get the green light next week, which could throw Intel a crucial financial lifeline. <\/span>\n                        <\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thenextweb.com\/news\/germany-intel-chip-plant-funding\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Intel\u2019s plan to construct a massive chip plant in Magdeburg, Germany, is arguably the centrepiece of the EU\u2019s strategy to ramp up domestic production of semiconductors.\u00a0 But cash flow has proven to be a major stumbling block for the mega-project. Intel attributes this to rising costs, partly a result of Russia\u2019s invasion of Ukraine.\u00a0 To&#8230;<\/p>\n","protected":false},"author":1,"featured_media":570428,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/img-cdn.tnwcdn.com\/image\/tnw-blurple?filter_last=1&fit=1280,640&url=https:\/\/cdn0.tnwcdn.com\/wp-content\/blogs.dir\/1\/files\/2023\/04\/intel-germany-EU-semiconductor-chip-1.jpg&signature=304465d39eba5f47d7ad48f053573b98","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-570427","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/570427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=570427"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/570427\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/570428"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=570427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=570427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=570427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}