Intel’s German Plant Delay Lands Blow to EU’s Chip Ambitions

  • Company to delay construction of Magdeburg plant by two years
  • Plant was on track to be biggest funded by EU Chips Act
A rendering of Intel’s early plans for two new processor plants in Magdeburg.Source: Intel Corporation
Lock
This article is for subscribers only.

Intel Corp.’s decision to postpone its planned factory in Germany marks a setback for the European Union’s semiconductor ambitions and will reignite controversy in Berlin over where to allocate €10 billion ($11 billion) in earmarked subsidies.

The embattled US chipmaker’s move to delay the project in Magdeburg by about two years is a blow to the EU’s goal of producing one-fifth of the world’s semiconductors by 2030. The German facility was on track to be the biggest plant supported under the EU’s Chips Act that was passed last year.