BERLIN, July 24 (Xinhua) — U.S. chipmaker Intel introduced on Thursday that it has deserted its plan to assemble a large-scale semiconductor facility in Germany, citing ongoing efforts to streamline its international manufacturing operations. The transfer brings a definitive finish to the venture that had been suspended for almost a yr.
The announcement got here alongside Intel’s second-quarter earnings report, which confirmed a web lack of 2.9 billion U.S. {dollars}, in contrast with a 1.6 billion loss in the identical interval a yr earlier.
The deliberate manufacturing unit in Magdeburg, about 150 km west of Berlin, was initially set to interrupt floor in 2024 with a complete funding of 30 billion euros (35 billion U.S. {dollars}). It was anticipated to create 3,000 direct jobs and, in line with the previous German authorities, probably as much as 18,000 oblique jobs within the surrounding area. To assist the venture, Berlin had pledged roughly 10 billion euros in subsidies.
Intel put the venture on maintain in September final yr amid rising operational and monetary pressures, delaying the unique manufacturing begin that had been focused for 2027 or 2028.
The cancellation comes at a delicate time for Germany, which is in search of to bolster its high-tech manufacturing sector. A draft of the nation’s new “Hightech-Agenda,” launched earlier this month, outlines ambitions to ascertain at the very least three semiconductor amenities and place Germany as Europe’s main chip manufacturing hub.
