Intel delaying German factory start?
Intel is said to have pushed back on its original opening date for a new chip factory in the eastern German city of Magdeburg, local media reports.
Originally scheduled for the first half of 2023, the regional newspaper Volksstimme reported that the semiconductor giant now wants more public subsidies.
Surging energy and raw materials prices had upset the U.S. company's original calculations Intel now calculates the construction to cost EUR 20 billion (instead of the budgeted of EUR 17 billion), and is discussing with the government how to "bridge the funding gap", the local newspaper "Volksstimme" reports.
Intel spokesperson Benjamin Barteder told the Volksstimme that the market has seen a shift as geopolitical tension has increased and semiconductor demand has fallen. A change that means that Intel is unable to provide a definitive start date for the construction.
However, Magdeburg's Lord Mayor Simone Borris, said in an official statement that despite everything, the scheduled start date has not changed.
"We will not alter the preparation schedule for the planned investment by the chip company Intel", the mayor said.