Daily Management Review

Intel postpones factory construction in Germany


According to the local newspaper Volksstimme, Intel Corp. has delayed the construction of a semiconductor facility in Magdeburg, eastern Germany, that had been slated to begin in the first half of 2023. The newspaper claims that the industry behemoth in semiconductors needs further government aid.

Thomas Hawk
Thomas Hawk
The corporation was reportedly obliged to revise its initial estimations as a result of a substantial increase in the cost of electricity and raw materials. The report notes that while Intel had initially anticipated spending about €17 billion, the actual amount is now closer to €20 billion.

“While semiconductor demand has decreased, geopolitical threats have increased, Intel spokesman Benjamin Barteder told the newspaper. - As a result, we are unable to provide a date for the commencement of construction.”

The business noted that it is talking with the government about potential solutions to fill the financing "gap."

"This gap has developed in the present circumstance. To advance this effort, we are engaging with partners and the government,” Intel told the publication.

source: volksstimme.de