The construction of Intel’s state-of-the-art semiconductor manufacturing plant in Magdeburg, Germany, is turning into a real soap opera. Initially the works were to begin during the first half of 2023but the negotiation of subsidies forced this date to be delayed until the summer of 2024. However, Intel and the German Government finally agreed to set the start date of construction in May 2025.
A part of the soil on which the plant will be located is classified as “black soil”, known in English as black soil. This type of soil is extraordinarily fertile thanks to its high content of organic matter and minerals, so it must be extracted from its original location before the start of construction of the factory to be reused elsewhere. Precisely, Intel’s itinerary planned to begin the removal of the black soil in May 2025, but this plan seems to have gone to hell.
The Magdeburg plant should be ready at the end of 2027 or beginning of 2028
Since the end of last May, the plan of Intel and the German Government officially established that the Magdeburg integrated circuit factory should be ready to start semiconductor production at the end of 2027, or, at the latest, at the beginning of 2028. Of course, at that time it was evident that everything would have to go smoothly for it to be possible to begin large-scale chip manufacturing on that date. And shortly after came the Intel disaster.
One of the measures that Intel has just approved requires postponing the start of construction work on the Magdeburg plant until 2029 or 2030.
The company led by Pat Gelsinger is addressing a restructuring that above all seeks to reduce its operating expenses and increase its competitiveness, and one of the measures that it has just approved, according to the German media HardwareLuxx, requires postponing the start of construction works on the Magdeburg plant until 2029 or 2030.
A delay of approximately five years if we take as a reference the last date contemplated by Intel is very significant, and, of course, torpedoes both the plans that Intel itself had for Europe and the European ambition in terms of semiconductors.
This Intel project was going to receive a very important support of 10,000 million euros from the Climate and Transformation Fund with a first batch of 3,960 million allocated for 2024. However, Intel’s decision to postpone the start of construction of the factory has halted the release of these funds, which could return to the federal budget.
In the current situation, it is possible that Intel and the German Government will be forced to renegotiate the conditions of this project later. Be that as it may, this important delay introduces great uncertainty into a project that right now seems to be on the tightrope. We will keep you informed about any developments that affect this initiative.
Image | Intel
More information | HardwareLuxx
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