Big picture: Germany is committed to developing the local microelectronics industry and is using lucrative subsidies to attract chipmakers to the region. Intel has already signed up to participate, but at least one other major chipmaker is still not ready to participate.

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Local media (per Register) claim that Intel will receive 6.8 billion euros ($7.15 billion) in grants to build a state-of-the-art campus in Magdeburg. Intel announced colossal project in March and estimated an initial cost of no less than 17 billion euros. The German subsidy will cover approximately 40 percent of the total cost.

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Intel’s expansion in the region will go a long way in helping the EU reduce its dependence on chip imports. In February, the EU announced European Chip Law aiming to double its share of the global semiconductor market by 2030.

The local government is also interested in accommodating other chip makers, but not everyone is ready to play ball right now.

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Earlier this week, Taiwan Semiconductor Manufacturing Co Chairman Mark Liu said they have relatively few customers in Europe. TSMC is still evaluating the possibility of expanding in Germany, but they have “no specific plans” at the moment, Liu added.

Intel is going to start construction in the first half of next year. If all goes according to plan, the hub will create about 3,000 permanent jobs for local residents. Mass production of chips at the advanced process node will begin in 2027.