Intel Corp. has followed up plans for new factories in Poland and Israel, with the go-ahead for a chip facility in eastern Germany, for which it will get €10 billion ($10.9 billion) in subsidies from that government.
That’s according to multiple press reports which add that a signing ceremony will take place on Monday afternoon between German Chancellor Olaf Scholz and Pat Gelsinger, Intel’s chief executive officer. MarketWatch has reached out to the German government and Intel for comment.
Intel INTC, +1.54% shares have climbed 38% this year, as semiconductor stocks SOX, -0.94% have rallied.
A plant originally planned for Magdeburg, a city in the eastern side of the country, was postponed over economic issues, with €6.8 billion in government aid promised, but the newer package will also include price caps on energy, Bloomberg reported Intel had apparently voiced concerns over high energy costs in Germany due to Russia’s invasion of Ukraine that began in 2022.
Intel has been trying to smooth its access to global supply chains by cutting its dependence on Asian chip manufacturing.
Israeli Prime Minister Benjamin Netanyahu announced Sunday that Intel will build a “huge and unprecedented” $25 billion advanced chip manufacturing plant in Kiryat Gat, which would open by 2027. Last week, the Santa Clara, Calif.-based company announced a $4.6 billion semiconductor assembly and test facility in Poland.
