Intel will still receive an increased subsidy for the construction of a German semiconductor plant. New venture will appear in the city of Magdeburg.

What is known

German authorities have reached an agreement with the American processor giant to provide it with €10 billion ($10.8 billion) in subsidies to build the plant. The package, in addition to financial subsidies, includes a cap on the cost of energy.

Initially, Germany only agreed to provide €6.8bn ($7.34bn) in subsidies due to a tight budget. Intel wanted €10 billion ($10.8 billion) and Federal Chancellor Olaf Scholz agreed.

Source: Bloomberg