Intel’s plans are key to the EU’s ambition to reshore parts of the global production of advanced microchips. The chipmaker first unveiled plans for a production factory (or “fab”) in Germany in March 2021. It was in lengthy discussions with the German government about a support package in past years.
Germany has increased its contribution to the project to around €10 billion due to spiking energy prices and general inflation. Late last year, the government had to find a new source for the money after a court struck down plans to repurpose a massive pandemic-era fund.
Schulze’s remarks show that these discussions have now concluded.
Germany’s Economy Minister didn’t respond to a request for comment. Intel declined to comment.
Commission spokesperson Lea Zuber said that the “Commission is in close contacts with the German authorities on possible support to Intel,” but that it couldn’t comment on outcome or timing.
The EU wants to increase its stake in the global chips value chain to 20 percent by 2030, from around 10 percent today.
To get there, EU legislators passed the EU Chips Act in 2023. The law defined “first of a kind” factories, making them eligible for more state support. Germany was one of the main beneficiaries of the new funding instrument. Taiwan’s TSMC is also developing plans for a factory in Dresden.
