Germany and Intel Corp. sealed an agreement for the US company to receive subsidies worth €10 billion ($10.9 billion) for a semiconductor manufacturing facility in the eastern part of the country, according to people familiar with the deal, APA reports citing Bloomberg.

Chancellor Olaf Scholz and Intel Chief Executive Officer Pat Gelsinger will attend a signing ceremony for the accord at 2:45 p.m. in Berlin, the German government said Monday in an emailed statement.

According to the contract, the construction of a chip production facility will take place in the east of the country.