Intel stunned the Germans by delaying the construction of factories
American chipmaker Intel is delaying the construction of factories in Germany. The decision to postpone was announced by the head of the company, Pat Gelsinger.
Since the German government has planned a subsidy of 10 billion euros for this, it is possible that this money will be poured into filling the holes in the very stretched draft budget for 2025.
Two Intel factories in the province of Saxony-Anhalt will cost around 30 billion euros and will create around 3,000 jobs. The government, interested in diversifying the supply of important raw materials and semi-finished products, including chips, encouraged investments with a subsidy of 9.9 billion euros.
However, Intel faced losses this year and had to resort to restrictions. Among other things, he intends to lay off 15 percent of the workforce and save a total of 10 billion dollars, and to delay the start of construction of factories in Germany and Poland by about two years.
The announcement stunned the Germans, especially since Gelsinger announced just two months ago that the factory in Magdeburg would be the most modern, with the aim of catching up with the advanced competition.
German Vice Chancellor and Economy Minister Robert Habeck described Intel’s decision as “purely business” and not a change in strategy. “We will discuss the question of what will happen to the money allocated for the subsidy behind the scenes of the Government,” he added.
By the way, the Government, with a lot of stretching and procrastination, barely agreed on the draft of the restrictive budget for the next year. Chancellor Olaf Scholz himself said he was “open” to repurposing Intel subsidies to fill budget holes.
At the same time, he emphasized, the German strategy for the development of semiconductor production remains unchanged. “It will be built,” the chancellor added.
Source: Seebiz
Photo: Pixabay
Source: bizlife.rs
