Germany will not have Intel factory
2022.12.18 15:21
Germany will not have Intel factory
Budrigannews.com – Intel Corporation According to a report by Volksstimme, a regional newspaper, the semiconductor giant has backed away from its original goal of opening a chip factory in the eastern German city of Magdeburg in the first half of 2023. The newspaper said that the company wanted more public subsidies.
After the COVID-19 pandemic and Russia’s invasion of Ukraine highlighted the risks of long, globe-spanning supply chains, the plant is central to plans by Germany and the European Union to increase local manufacturing to strengthen the continent’s resilience.
However, the newspaper stated that the American company’s initial calculations had been tampered with by rising prices for energy and raw materials. According to the newspaper, prices were now closer to 20 billion euros, rather than the 18 billion euros that Intel had originally planned to spend.
The newspaper quoted Intel spokesperson Benjamin Barteder as saying, “Demand for semiconductors has fallen and geopolitical challenges have grown.” This indicates that we are unable to provide a definitive start date for the construction.
According to the newspaper, the business added that it was talking to the government about how to close a funding “gap.”
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“The current circumstance created the gap. According to the newspaper, Intel stated, “We are working with partners in the government to push the project forward.”
