Germany: Intel postpones the start of a plant in Magdeburg by two years

The American chip company postpones the construction of its plant in Magdeburg in the eastern , worth billions of euros , by two years. This was announced by the CEO of the Pat Gelsinger group in a letter to the workforce yesterday (16.9. 24) at night. Last year, Gelsinger (Intel) had promised to spend more than 30 billion euros on a state-of-the-art factory in Saxony- Anhalt of Germany. The state was to contribute nearly ten billion euros to subsidies. That’s not true anymore. “We have recently increased our capacity in Europe with our factory in Ireland, which will remain our most important European hub in the near future,” the director wrote in his message to the workers. The 63-year-old explained that the start of construction of the plant in Elbe would then depend on demand. Intel originally planned to manufacture state-of-the-art processors in Magdeburg from 2027. Intel earns its money mainly with central processing units (CPUs) for computers, laptops and servers. The temporary cessation of investment in Magdeburg is part of an extensive reorganisation of the seriously problematic company. The administrator also announced on Monday that the so-called foundry business would secede. Intel plans to produce semiconductors on behalf of other suppliers in this so far failed segment.