Intel delays chip plans in Germany and Poland

Intel has announced a two-year delay in its plans to build mega chip-making factories in Germany and Poland, citing lower demand than expected. Despite significant government subsidies, Intel decided to pause the projects, which had been seen as a boost for both countries’ national industries. The decision comes as a setback after months of negotiations between German officials and the company, which resulted in increased subsidies for the €30 billion project.

In Poland, Intel had planned to establish a semiconductor factory near Wroclaw, supported by $1.8 billion in funding. While European plans have been delayed, Intel confirmed its US projects remain unaffected, with the company receiving $3 billion in direct funding to bolster domestic semiconductor manufacturing for the US military.

Additionally, Intel is scaling back its investments in Malaysia but will continue expanding its capacity in Ireland, which will remain its primary European hub. The delay in these European projects reflects the broader challenges faced by the EU as it aims to increase semiconductor production and reduce reliance on Asian markets.

Intel’s decision comes at a time when European nations are seeking to strengthen their chip manufacturing capabilities after recent supply chain disruptions. As demand for semiconductors remains crucial to industries such as defence and electronics, both Germany and Poland face delays in their plans for industrial growth.