Berlin, September 17, 2024 – Intel, the American chip manufacturing giant, has announced a halt to its planned construction of a factory in Magdeburg, Germany, citing weaker-than-expected market demand. The decision was confirmed by Intel’s CEO, Pat Gelsinger, on Monday evening, according to a report by DPA.
“We are pausing our projects in Poland and Germany for approximately two years due to expected market demand,” Gelsinger stated. Intel’s European operations will now focus on its Ireland facility, which recently expanded and will remain the company’s main production hub on the continent in the near future.
Delayed Investment in Magdeburg
Intel had planned a major investment of €17 billion in the Saxony-Anhalt region, aiming to build a vast manufacturing complex in Magdeburg. The project’s primary goal was to reduce Europe’s dependence on chip imports from Asia. However, concerns about the viability of this project have grown due to Intel’s ongoing financial challenges.
In early August, Intel announced plans to cut 15% of its global workforce, further indicating the company’s need to streamline operations amid fluctuating demand for semiconductors.
This delay raises questions about Europe’s broader strategy to bolster its semiconductor manufacturing capabilities and reduce reliance on external suppliers.
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Intel, chip manufacturing, Magdeburg factory, Pat Gelsinger, market demand, Europe semiconductor industry, investment delays
