The German Ministry of Economic Affairs does not see any problems for the American concern Intel to find about 3,000 workers for the planned two chip factories in Magdeburg. “The federal government assumes that Intel will be able to fill all planned jobs,” says a response from the ministry available to Reuters news agency to a request from the left-wing parliamentary group.
In addition to domestic workers, employees from abroad are also eligible. “As part of the legal financing options, the recruitment of special groups of people could be financially supported.” It is known that Intel is in exchange with the Research Factory Microelectronics Germany – an association of scientific institutes – and with universities in Saxony-Anhalt.
“Very innovative chips” from Magdeburg
In the 23-page answer, the Ministry of Economic Affairs repeatedly refers to the company itself when it comes to questions about investments, costs and precise plans. The German government assumes that Intel will produce “highly innovative chips” in Magdeburg for the European market. “Chips with advanced technology, ie with particularly small structure dimensions, are likely to be produced at the Magdeburg site,” it says. These so-called logic chips could be used in data centers and in the fields of artificial intelligence and autonomous driving. The German car industry, for example, could benefit from this. “In addition, Intel’s production capacity in Magdeburg can be used by German chip design houses to manufacture their products.”
Factories are heavily promoted
The answer shows that the German government does not yet know how much government subsidies the American company will ultimately receive – and where the government will get the money from. Most recently there was talk of about 10 billion euros for an investment of more than 30 billion euros. The form and amount of the financing now depend on the approval of the European Commission under state aid law, writes State Secretary Philipp Nimmermann of Economic Affairs. “Therefore, the federal government is currently unable to provide information on the exact amount of the grant.” Funding initially pledged should come from the federal budget. Nimmermann emphasizes that the additional resources are still being discussed in the German government. According to information from government circles, the amount involved is 3.3 billion euros.
Left-wing economic policy spokesman Christian Leye criticized the government’s evasive responses. “With billions of government dollars flowing, in the interest of workers, the federal government must impose strict requirements on the company in terms of job security and location guarantees,” he told Reuters. One gets the impression that “when it comes to groundbreaking decisions, the ball is solely in Intel’s court, while the federal government dutifully holds the reins”. With funding of this magnitude, public participation should not be taboo.
Source: Krone

I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.