Germany’s Finance Minister, Christian Lindner, has rejected Intel’s request for increased subsidies for a chip plant worth 17 billion euros ($18 billion).
Lindner stated in an interview that no additional funding is available in the budget, as the focus is on consolidating the budget rather than expanding it.
Initially, Intel was set to receive 6.8 billion euros in government support for its fabrication plant in Germany.
However, due to escalating energy and construction expenses, the company is now seeking around 10 billion euros, as reported by the newspaper.
Intel has not yet responded to Reuters’ request for comment.
Last year, Intel announced its selection of Magdeburg, a central German city, as the location for a new chip-making complex, as part of an extensive $88 billion investment initiative across Europe.
This investment plan includes bolstering a factory in Ireland, establishing a packaging and assembly site in Italy, and setting up a design and research facility in France.
Intel joins chipmakers, such as Taiwan’s TSMC and the US-based Wolfspeed, in pursuing government funding to construct European factories. These efforts reflect a broader trend of countries seeking to enhance domestic chip production and reduce reliance on foreign suppliers.