The American semiconductor company Intel has put its plans to build a new chip factory in Magdeburg and Wroclaw on hold for the time being.
The project, which was originally intended to create 3,000 jobs, is expected to be delayed by two years. CEO Pat Gelsinger announced in a press release on September 16 that the company is struggling with considerable financial difficulties and has initiated a cost-cutting program with the reduction of 15,000 jobs. Plans for a factory in Poland have also been put on hold. Intel plans to increase efficiency and profitability and improve competitiveness. The company will continue to focus on investments in the USA and the development of new chips in cooperation with Amazon in order to secure the domestic chip supply chain.
Production capacity in Europe was increased last year with the construction of a factory in Leixlip, Ireland. In Malaysia, the company remains active but plans to adapt the commissioning of a new factory to market conditions.
The company also plans to reduce two thirds of its real estate worldwide by the end of the year. Gelsinger emphasizes the need to drive innovation and increase operational efficiency in order to stabilize the financial situation.
