By mid-December, it became clear that Intel had difficulties with the implementation of the project for the construction of an enterprise in Magdeburg, Germany, although it had already bought the site for the profile site. Recall that Intel was going to spend up to 20 billion euros on the construction of two enterprises in this area. Local media are now reporting that the company expects to receive 10 billion euros in subsidies instead of the original 7 billion euros.
Image Source: Intel
Strictly speaking, based on the Handelsblatt publication, which cites sources among German officials, the authorities have already approved the allocation of subsidies to Intel for the construction of enterprises in Magdeburg in the amount of 6.8 billion euros, but now the processor giant wants to receive almost one and a half times more. The growth of Intel’s appetites is explained by the increase in energy costs, which will inevitably be used in construction. In addition, as compensation, Intel is ready to implement the use of more advanced technologies in German enterprises than originally planned.
Representatives of Intel in comments to Reuters declined to give detailed explanations on the current situation, but said that the company is actively “working with government partners to close the critical cost gap.” Geopolitical events in the region could really have negatively affected the costs of the project, and Intel itself is now not in the best financial position. The company has already had to abandon the construction of research centers in Israel and the United States, but the top management of Intel is not yet ready to save on the expansion program.
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