The head of the American chip manufacturer Intel, Pat Gelsinger, has justified the ten billion euros in subsidies that his company receives for the construction of a chip factory in Magdeburg. Intel does not compete with other companies, but with countries.
Gelsinger told the “Süddeutsche Zeitung”. China, Korea and Taiwan have massively supported the semiconductor industry in recent decades. The subsidies are necessary to be able to produce competitively.
The decision to build one of the largest French fries factories in the world in Germany was made mainly because Germany has a great tradition in industrial production, Gelsinger told the “Süddeutsche” (Monday edition). Within Germany, Magdeburg had the upper hand: “Magdeburg was simply hungrier. They wanted to win.”
Intel says it wants to invest more than 30 billion euros in the construction of the production complex in Magdeburg. In return, the Federal Ministry of Economic Affairs has promised American companies subsidies amounting to almost ten billion euros.
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.
