Germany is pushing Intel to expand its plans for a landmark €17bn chip plant in exchange for higher subsidies, in what is already set to be the country’s largest foreign direct investment since the second world war.
The US semiconductor group is due to receive €6.8bn in subsidies from Berlin to build its mega fab, or manufacturing plant, in the eastern city of Magdeburg.
People close to the company said Intel wanted subsidies to rise to at least €10bn, citing higher energy and construction costs. German officials said they could increase the financial support, but only on condition the group invested more.
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