Intel set to get $5.5 billion in German subsidies for plant

Intel set to get $5.5 billion in German subsidies for plant

Bloomberg: Germany is looking to grant Intel Corp. more than 5 billion euros ($5.5 billion) in public funds to build a massive semiconductor plant, part of the European Union’s effort to build up domestic chip production, officials familiar with the negotiations said.

Intel will start work on a 17 billion euros ($18.7 billion) cutting-edge semiconductor production site in Magdeburg, Germany, the company said . Intel and the country are still discussing the exact amount the chipmaker could receive, but officials familiar with the matter said the government plans to give more than 5 billion euros in state aid.

Intel shares gained as much as 3.7% to $46.46 in New York, marking the biggest gain two weeks. Investors have been concerned about Intel not getting reimbursed for its costly expansion plan, weighing on shares.