According to German Vice Chancellor Robert Habeck, the decision by US tech giant Intel to postpone the construction of a large chip factory in Germany does not change the government’s strategy to expand semiconductor production in Europe.
Habeck said Tuesday that Intel’s decision was due to corporate policy and “financial requirements,” but that the German government “has done its homework” on attracting chipmakers.
Habeck expects the European Commission to approve Germany’s subsidy program for the sector soon. He also said Germany’s goals remain unchanged despite Intel’s decision announced Monday.
“After all, the strategy is not focused on one company, but on ensuring economic security, that we also have a certain level of expertise in this crucial industrial sector in Europe and that we are not 100% dependent on the markets in Southeast Asia,” said Habeck, a Green.
The German government plans to subsidize Intel’s plant in the city of Magdeburg with about €10 billion ($11 billion). The money would come from Germany’s Climate and Transformation Fund (KTF), which is earmarked for environmental projects and efforts to boost key technologies.
This year’s budget has earmarked approximately €4 billion from the KTF for Intel.
“Behind the scenes, we will discuss within the government how we will proceed with the reserved funds,” Habeck said.
