Intel delays German factory start, wants more subsidies, reports Volksstimme from Health & Fitness Journal

©Health & Fitness Journal. FILE PHOTO: The Intel Corporation logo is seen at a temporary office during the World Economic Forum 2022 (WEF) at Alpenresort Davos, Switzerland, May 25, 2022. REUTERS/Arnd Wiegmann

BERLIN (Health & Fitness Journal) – Intel Corp (NASDAQ:) 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, regional newspaper Volksstimme reported, saying the semiconductor giant wanted more public subsidies .

The plant is central to Germany and the European Union’s plans to bolster the continent’s resilience by moving more production locally after the COVID-19 pandemic and Russia’s invasion of Ukraine have eroded the risks of long, global supply chains have made clear.

However, the newspaper said that rising energy and raw material prices had upset the US company’s original calculations. Where Intel had originally budgeted costs of 17 billion euros ($18 billion), prices are now closer to 20 billion euros, the newspaper said.

“Geopolitical challenges have grown and demand for semiconductors has fallen,” Intel spokesman Benjamin Barteder was quoted as saying by the newspaper. “That’s why we can’t give a definitive date for the start of construction.”

The company added that it was discussing with the government how to bridge a funding gap, the newspaper said.

“The gap has arisen in this current situation. We are working with government partners to move the project forward,” the newspaper quoted Intel as saying.

Intel did not immediately respond to a request for comment.

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