After months of negotiations over subsidies, the German government and Intel (INTC.O) are poised to agree on the U.S. chipmaker’s proposed 17 billion euro ($18.6 billion) Dresden factory.
Intel requested 10 billion euros in subsidies from Germany, where electricity and labor are expensive.
On Friday, Intel CEO Pat Gelsinger told Reuters that Germany had offered too little but expected to achieve an agreement. Intel did not discuss the subsidy.
The chancellery said Chancellor Olaf Scholz and Intel’s Gelsinger would sign a deal at 1245 GMT on Monday.
The company’s Magdeburg project funding from the German government remains unknown.
Last Monday, the Handelsblatt business daily stated that the U.S. company would receive 9.9 billion euros ($10.84 billion) instead of 6.8 billion.
Scholz’s administration is subsidizing tech companies. Supply chain fragility and semiconductor dependence on South Korea and Taiwan are raising concerns.
