U.S. chip giant Intel Corp INTC.O announced plans last March to build a new chip manufacturing complex in Magdeburg, but is now asking for more subsidies in light of rising inflation, according to media reports. The move comes as carmakers such as Mercedes-Benz MBGn.DE and Volkswagen VOWG_p.DE continue to cope with a shortage of vital semiconductors needed for the numerous electric vehicles they are shifting to. Volkswagen, Europe's top carmaker, earlier this month warned that the chip squeeze meant 2023 would remain volatile and challenging, but expected supplies to improve.