As a portion of its ambition for development in Europe, Intel (INTC.O) will invest over thirty billion euros (approximately 33 billion USD) in developing two chip-making facilities in Magdeburg. German Chancellor Olaf Scholz welcomed the agreement on Monday as the most significant overseas investment that Germany has ever received.
According to an individual who is acquainted with the situation, Berlin has decided to assist the worth of up to 10 billion euros to the American chipmaker, above the 6.8 billion euros it had previously given Intel to construct two advanced manufacturing plants in the eastern metropolis.
The government along with the territory of Saxony-Anhalt, where Magdeburg is situated, were thanked by the CEO of Intel Pat Gelsinger for achieving the goal of a lively, environmentally friendly, leading-edge semiconductor sector in Germany as well as the EU.
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To regain its position as the industry leader in chip manufacturing and more effectively rival AMD Nvidia (NVDA.O), (AMD.O), alongside Samsung, Intel has invested billions in constructing plants on three different continents.
“Today’s agreement is an important step for Germany as a high-tech production location – and for our resilience,” Scholz said after Monday’s signing.
“With this investment, we are catching up technologically with the world’s best and expanding our own capacities for the ecosystem development and production of microchips.”
Source: reuters.com
It’s the third significant deal of Intel in just a few days with the German transaction. Whilst Israel announced that Intel will invest a total of $25 billion in manufacturing there on Sunday, Poland, an additional member of the European Union (EU), received proposals for a 4.6 billion USD chip facility on Friday.
As Per McKinsey, the global semiconductor manufacturing market is predicted to grow from 600 billion dollars in 2021 to an estimated trillion-dollar sector by 2030.
having Germany anxious about dropping its appeal as an investment destination, both the United States along with Europe are working to entice major manufacturing companies with a combination of government support and advantageous laws.
Berlin’s authorities are spending millions of euros on incentives to entice technology companies, despite rising concern over the supply chain’s frailty and its reliance on South Korea as well as Taiwan for semiconductors.
“The size of Intel’s reaffirmed and increased commitment to its expansion in Magdeburg speaks louder than words about Germany’s appeal as a high-tech business location,” said Robert Hermann, CEO of government agency Germany Trade & Invest.
Source: reuters.com
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