Intel postponed construction of plants in Germany and wants $3.18 from the government
U.S. processor giant Intel is forced to postpone the construction of new semiconductor plants in Germany because of rising prices. The company wants the German authorities to make up the difference.
Here's What We Know
The construction of two new chip testing and packaging plants was originally estimated at €17 billion ($18 billion). Due to inflation, the company from California is forced to revise the cost of the project and expects that the difference will be compensated from the German budget. We are talking about €3 billion ($3.48 million). The start of construction was scheduled for the first half of 2023, but now Intel cannot guarantee it.
Another problem is the falling demand for semiconductor products. This is another reason why Intel does not know when it will start building the two plants. Both plants are to appear in Magdeburg, Saxony-Anhalt. The first step toward construction was made in late fall, when the U.S. company purchased two plots of land in the city.