GlobalFoundries, the semiconductor manufacturing specialist spun out of AMD's now-defunct chip manufacturing unit, has voiced worries regarding the German government's distribution of a $22 billion ($20 billion) subsidy that's part of the (now approved) $47.4 billion European Chips Act. According to available information, Intel is the number one recipient of the grant by a large margin, guzzling around 50% of the contended $20 million to be allocated to Intel's new Magdeburg Mega Fab complex. Intel, by the way, already tried to expand its slice of the subsidy pie, but was denied.
GlobalFoundries' argument is that the subsidy amount is big enough that it can distort other companies' ability to compete. It's relatively easy to see the argument: Intel's Fiscal Year 2022 revenue stood at $63.1 billion; GlobalFoundries' stood at just $8 billion. And with another $6 billion of the subsidy's $20 billion tranche being reserved for Taiwan's TSMC and Germany's own Infineon, that means all other semiconductor players will have to share a $4 billion budget.
