Intel has postponed indefinitely the start of construction of a new chip manufacturing facility in Germany due to soaring energy prices and "geopolitical risks". This was reported by the German publication Volksstimme.
“Geopolitical challenges have risen, while demand for semiconductors has fallen. This means that we cannot yet give a final start date for construction,” the newspaper quoted Intel spokesman Benjamin Barteder as saying.
Intel's abandonment of its original goal of opening a chip factory in the eastern German city of Magdeburg in the first half of 2023 was surprise for the German authorities.
The construction of the plant was to be an important step in the plans of Germany and the European Union to strengthen the resilience of the continent through the expansion of local production.
However, the sharp rise in energy prices and raw materials violated the original calculations of the American company. Intel initially envisaged spending 17 billion euros, but now the project is estimated at almost 20 billion euros, the newspaper writes.
The company added that it is discussing with the government how to overcome the current funding gap.
