Germany reaffirms Intel’s commitment to new chip plants

Germany remains confident in Intel’s commitment to building semiconductor plants, despite a two-year delay announced by the US chipmaker. Chancellor Olaf Scholz emphasised the importance of Intel’s project, viewing it as a long-term strategy to enhance Germany’s position in the global semiconductor industry. Scholz made these remarks during a visit to Astana, Kazakhstan.

Intel’s CEO, Pat Gelsinger, revealed the construction pause in Magdeburg as part of broader cost-saving measures. Although German officials acknowledged the delay, they remain optimistic about Intel’s future in the country. Economy Minister Robert Habeck stressed the continued importance of semiconductor production for Germany and Europe.

A disagreement emerged within Germany’s coalition government over the unused subsidies intended for Intel. While the finance ministry favours reallocating the funds to balance the budget, the economy ministry is advocating for reinvestment in the semiconductor industry. Economists also proposed using the funds for tax reform or investment incentives to benefit all companies, not just those receiving political attention.

Scholz confirmed that the government would address how to best allocate the unspent subsidies. Many experts agree that focusing on tax reforms could promote broader business growth across Germany’s industries, ensuring long-term economic stability.