Intel delays German fab, wants more subsidy

Intel delays German fab, wants more subsidy

Business news |
By Peter Clarke

Intel is pushing back the start date for the construction of a wafer fab in Magdeburg, Germany, from 1H23, while asking for more government subsidies, according to regional newspaper Volkstimme.

The original plan was to begin construction of the plant in 2023 or 2024 with a view to chip production starting in 2027.

Since the plan to build two fabs at Magdeburg in Saxony-Anhalt, Germany, was rolled out in March 2022, the cost has risen from €17 billion to €20 billion, the report said giving rise to a growing gap between what Intel is prepared to spend and the amount of government subsidy (Germany plans to pay €5 billion towards Magdeburg fabs).

At the time of the roll out Intel’s CEO Gelsinger said: “Still there’s still work ahead to obtain … the financial support to make the project competitive.”

Volkstimme quoted an Intel spokesperson saying: “Geopolitical challenges have grown and demand for semiconductors has fallen. This means we cannot yet give a definitive date for the start of construction.” The report added that Intel continues to discuss with government how a funding gap could be closed.

Related links and articles:

 Germany plans to pay €5 billion towards Magdeburg fabs

Opinion: Full-fat finance is missing from Intel’s European plan

Intel confirms German fabs in €80bn European investment

Report: Intel selects Magdeburg for German wafer fab

Intel set to buy foundry Tower for $5.4 billion

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