Germany and Intel have reportedly reached an agreement for the provision of subsidies totaling 10 billion euros to support the construction of a semiconductor manufacturing plant in eastern Germany. The agreement was signed in Berlin in the presence of German Chancellor Olaf Scholz and Intel CEO Pat Kissinger. However, specific details of the agreement were not disclosed in the statement released by the German government on June 19, according to Bloomberg. The signing ceremony involved Scholz's senior economic adviser Joerg Kukies and Intel's executive vice president, chief global operating officer, and general manager of manufacturing, supply chain, and operations Keyvan Esfarjani.

The enhanced subsidy package is said to include both traditional financial assistance and a cap on energy prices. Last year, Intel postponed the start of the plant's construction due to economic challenges, despite having already received 6.8 billion euros in government aid for the project in Magdeburg. Seeking additional funding, Intel aims to increase the German side's contribution to the fab construction subsidies to approximately 10 billion euros.

The semiconductor project in Magdeburg undertaken by Intel is considered to be the largest foreign investment in Germany's history, with a total investment of around 17 billion euros (equivalent to approximately 130.39 billion yuan). It is a key component of the European Union's strategic goal to expand its share of the global semiconductor market to 20 percent by 2030, compared to the current level of less than 10 percent. As such, Intel's project is considered a top priority in achieving this ambition.

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