Intel to build $33-billion chip plant in Germany after government pledges to cover 1/3rd of cost

BERLIN (AP) — Intel and the German government have signed a deal that will see the U.S. company spend more than 30 billion euros ($32.8 billion) to build a chip manufacturing site in the eastern city of Magdeburg, after Germany pledged to cover a third of the investment required. Word of the agreement came as German Chancellor Olaf Scholz met Intel CEO Pat Gelsinger in Berlin. Intel acquired the land for two semiconductor facilities in Magdeburg in November, and the company says the first one is expected to start production in four or five years. Before the revised letter of intent was signed Monday, plans had foreseen a total investment of at least 17 billion euros. The plan will need approval by the European Union’s executive branch.