German government to sign agreement with Intel after months of chip plant talks

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German government to sign agreement with Intel after months of chip plant talks
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The agreement comes at a time when the United States and Europe are both trying to lure big industrial players via a mix of state subsidies and favourable legislation

Berlin is currently also talking with Taiwan’s TSMC and Sweden’s electric vehicle battery maker Northvolt about setting up production in Germany, having already convinced Tesla to build its first European gigafactory there.

The U.S. chip maker last year announced plans to build a big chip complex in Germany, along with facilities in Ireland and France, as it seeks to benefit from the European Commission’s eased funding rules and subsidies as the EU tries to cut its dependence on U.S. and Asian supply. “We lost this industry to Asia, we have to be competitive if we’re going to bring it back,” he said, adding the overall investment for the site would be “tens of billions of dollars”.

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