This was actually already foreseeable in December 2022: Intel's huge project for a new German wafer fab on a greenfield site near Magdeburg still has to go through several iterations and updates in order to realize the project of a 17 billion investment in several production lines for the latest generation of chips announced at the beginning of 2022 as planned.
Intel spokesperson Benjamin Barteder pointed out in the East German daily newspaper 'Volksstimme' that the planned start of construction in the first half of 2023 and the start of production in 2027 depended on the increased willingness of the EU, the federal government and the state of Saxony-Anhalt to provide funding.
Declining demand for certain semiconductors
Intel has not yet issued an official statement on this. On January 9, 2023, the Intel spokesperson at least issued a declaration of intent to the German Press Agency: "We remain committed to this project. We are working on closing the crucial cost gap to make the project globally competitive." The problem: the increased construction and energy costs in the meantime would have an impact on the establishment of the Fab. Demand for certain semiconductors has also fallen due to geopolitical tensions, inflation and recession.
The support from the EU through the eagerly awaited Chips Act is therefore hardly in question. However, the substantial increase in aid of €6.8 billion expected by Intel from the Federal Ministry of Economics has not yet met with approval. This is the catch that acts as a tactical bargaining chip in Intel's scheduling. Intel could reduce the investment volume, delay the start of construction or even favor a different location. There are currently tough negotiations going on behind the scenes. After all, the purchase agreement for the prospective building site has long since been signed and the initial development work has begun.
