The American company Intel – one of the most important chip manufacturers– decided to postpone the construction of its new factory in Magdeburg, Germany, according to what the company’s CEO, Pat Gelsinger, said a few hours ago. Based on the latest information, the project is expected to be delayed by about two years.
It is noted that Intel planned to build two chip factories in Saxony-Anhalt, creating around 3,000 jobs, with a groundbreaking ceremony planned for this year. However, the company facing losses and embarked on a program of cuts of its operating costs earlier this year. In August, it even announced that it planned to cut its workforce by 15% as part of a multibillion-dollar cost-savings program.
The factory Intel plans to build in Magdeburg, Germany is part of a major investment by the company to boost semiconductor production in Europe. This investment has a strategic objectivereducing dependence on Asian markets and strengthening Europe’s autonomy in semiconductor technology. The German government has promised state funding to attract the investment, providing subsidies worth around 10 billion euros. The total cost of the project is estimated at 30 billion euros. The plant is part of the European Union’s strategy to increase semiconductor production in Europe, aiming for 20% of global chip production to be carried out in the EU by 2030 (European Chips Act).
This project is extremely important for Germany and the EU, as it will boost domestic production capacity and reduce dependence on third countries in a critical sector, such as semiconductors.
Source: www.digitallife.gr
