Magdeburg (dpa/sa) - The Federal Ministry of Economics is not planning to increase funding in the course of the planned settlement of the US chip manufacturer Intel in Magdeburg. The company is in talks with the company about the specific design of any funding and "does not expect an increase in the funding framework," said a response from Minister Robert Habeck (Greens) to a request from the left-wing parliamentary group. The "Magdeburger Volksstimme" reported about it first.
In March 2022, Intel announced that the latest generation of chips would be produced in Magdeburg from 2027. In a first expansion stage, two semiconductor factories are to be built, which could create several thousand jobs. The investment should cost 17 billion euros.
In the course of this, the federal government had promised a subsidy of 6.8 billion euros - subject to a change in the legal framework by the EU. The purchase agreement between the city and the company for the property has been signed and archaeological investigations of the site began in January.
However, higher construction and energy costs weigh on the project. In addition, there is a reduced demand for semiconductors. "Much has changed since we announced our plans to build a new semiconductor fab site in Germany," an Intel spokesman said in December. The increase in energy costs in Germany and in Europe is "a problem".
The 17 billion euros will probably not be enough. The chip manufacturer is now more cautious about the start of construction, originally planned for the first half of 2023. "As for the start of construction itself, we will provide more details as soon as we can." It is working with governments to close the cost gap compared to non-EU locations. "Given the current economic and geopolitical situation, this gap has grown."
Saxony-Anhalt's left-wing faction leader, Eva von Angern, called for more transparency on the use of the funding. It's not just about a number of tax funds, but now also about the sense of this investment, she said.