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The start of construction for Intel's planned chip factory in Magdeburg has been postponed due to ongoing negotiations with the federal government about subsidies. A company spokesman said when asked by WELT AM SONNTAG that no date had yet been set for the start of construction. As long as the subsidies are not legally certain, one does not want to start.
When the project was announced last year, the state government of Saxony-Anhalt assumed that construction would start in the first quarter of 2023. This is no longer tenable. In addition, the US chip manufacturer could adjust the investment volume or stretch the time frame of the investment and not fully expand the plant at first.
"A lot has changed since we presented the plans for the Magdeburg factory in early 2022," said the Intel spokesman. “Geopolitical challenges have increased, semiconductor demand has declined, inflation and recession are challenging the global economy. We are observing market developments closely and will adjust the pace of our investments accordingly.” However, Intel stands by the project.
In response to a request from the Leipzig member of the Bundestag Sören Pellmann (left) to the Federal Ministry of Economics on the subject, State Secretary Sven Giegold confirmed that this is currently being renegotiated: "The Federal Ministry for Economic Affairs and Climate Protection is currently in talks with Intel about the specific design of any funding," explained the Green politicians in the answer that is available to WELT AM SONNTAG.
He is “not expecting an increase in the funding framework”. So far, Intel has only received a non-legally binding “Letter of Intent” as a funding commitment. This letter from October 2021 is still from the previous government.
"Everything on shares" is the daily stock exchange shot from the WELT business editorial team. Every morning from 7 a.m. with our financial journalists. For stock market experts and beginners. Subscribe to the podcast on Spotify, Apple Podcast, Amazon Music and Deezer. Or directly via RSS feed.
