Intel acknowledges difficulties with the German plant construction project but
Hardware

Intel acknowledges difficulties with the German plant construction project, but does not give it up

Intel acquired a piece of land in Magdeburg last fall, on which construction of a chip packaging and test facility is to begin this year. The costs will increase and the European Commission has not yet decided on the level of subsidies. Company officials say that they are not giving up on their intentions to implement this project.

    Image source: Intel

Image source: Intel

Intel Director of Global Operations Keyvan Esfarjani said at an industry event in California: “We are committed to the success of the project in Magdeburg. We have to adapt to the existing conditions, but we can’t lose sight of the ball.”. Recall that in November last year, the German media in a series of publications expressed doubts about Intel’s ability to start building the company according to plan.

According to information Reuters, German officials confirmed that they were in talks with Intel and the EU government to implement this project. In her opinion, the amount of subsidies for building a company in Magdeburg will depend on the decision of the European Commission, and the latter needs to understand how large-scale to organize the production of Intel chips in Germany. Keyvan Esfarjani did not comment directly on the impact of inflation on the project budget, but stated the following: “Geopolitical issues have risen, demand for semiconductors has declined, and the global economy is being hit by inflation and recession”.