Intel to invest $33 bln chip manufacturers in Germany

Intel signed a joint cooperation agreement with the German federal government on Monday to spend more than $33 billion to develop two chip-making plants in Magdeburg as part of its expansion push in Europe.

Berlin has agreed subsidies worth nearly €10 billion with the U.S. chipmaker, a person familiar with the matter said, more than the €6.8 billion it had initially offered Intel to build two leading-edge facilities in the eastern city.

The global semiconductor market is expected to reach a trillion dollars by 2030, expanding from $600 billion in 2021, according to McKinsey & Company.

It is worth mentioning that the German Finance Minister, Christian Lindner, rejected Intel’s demands for increased support for a new chip factory in eastern Germany, costing about $18 billion, saying his country could not afford to do so.