German media reported that Intel would receive about 6.8 billion euros in subsidies for its planned Magdeburg plant. About 2.7 billion euros have been reserved in the 2022 federal government budget, and the remaining funds will be allocated in the 2023 and 2024 budgets.
Martin klobel, a member of the German Bundestag Magdeburg, announced the budget allocation to the local media. He said that the establishment of Intel in Magdeburg will promote the economy of the entire Saxony Anhalt region.
Intel's total investment budget in Magdeburg exceeds 33billion euros, which means that the German government has invested about one fifth of the total investment. In other words, the scale of the first Fab will only reach about 17billion euros in the end. There is room to build two more Fabs in the location selected by Intel. The production of the new fab is estimated to start sometime in 2027.
On the other hand, Reuters reported that TSMC had decided to shelve the development plan in Europe for the time being, mainly due to the lack of local customers.