Berlin to sign agreement with Intel after chip plant talks

The German government and Intel (INTC.O) are expected to ink a deal over the U.S. chipmaker’s planned factory in Dresden, capping months of talks over subsidies needed for the project that its CEO said will cost it tens of billions of dollars.

Germany has scheduled the signing of an agreement with Intel for 1245 GMT on Monday and both Chancellor Olaf Scholz and Intel CEO Pat Gelsinger will be present for the ceremony, the chancellery said in a statement.

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, with Berlin concerned about losing appeal as a place to invest.

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 (TSLA.O) to build its first European gigafactory there.

Intel has reportedly asked for subsidies worth 10 billion euros ($10.91 billion) from Germany, where the cost for energy and labour is high.

This report’s information was first seen on REUTERS; to read more, click this link.