No more Intel fab in Europe… For now

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For some time now, Intel has been planning to set up in Germany, more specifically in Magdeburg. It’s a perilous project, however, and one that has seen many twists and turns. Most recently, it was soaring energy costs that threatened the project, even though it was announced as being highly subsidized by the German government. Now the news is in: the project has been suspended!

Intel: a factory in Germany is not imminent..

Intel fab allemagne

As you know, the company is going through a rough patch, so much so that its latest financial results were negative. In short, we won’t go over the whole story again, but there have been lay-offs, frozen investments and, most recently, news that the US government has announced that it is delaying the payment of aid granted under the Ships & Science Act until the company can get back on its feet.

This time, we learn that the installation in Germany has been suspended. The blues are speaking out, saying that the time had come to take their time, that accelerated investment was over. For the time being, the company will be investing more “flexibly and efficiently”. In other words, it’s dead for now.

On the other hand, when you lose money, you limit the bleeding, which is what the company is doing. Furthermore, to clean up the company’s accounts, the foundry section will become a separate subsidiary. As a reminder, this sector is dedicated to the production of chips for third-party customers… A bit like what TSMC does. However, following massive investments, this sector is in deficit.

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In short, given the many twists and turns concerning this fab in Germany, it’s doubtful whether it will ever see the light of day.