Intel puts German plant plans on hold I DW News

It was to be the biggest foreign investment in Germany's post-war history. Now US tech giant Intel has put plans for a giant chip factory in the eastern city of Magdeburg on hold. The 30-billion-euro project would have created 3,000 jobs and provided a major boost to a region that has traditionally lagged behind the rest of the country. DW Business speaks with Professor Marcel Thum from the Ifo Economic Research Institute.

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[joem]

Cutting off Russian energy, losing the biggest car market (China), even the US won't invest ... Spells very tough times for Germany.

[matthewbaynham]

10 billion in subsidizes for 3 thousand jobs. Thats 10, 000, 000, 000 euros for 3, 000 jobs, thats 3, 333, 333 euros per individual job.

[thomasthomasphilp]

Germany lacks flexibility in every sector

[no_one_caress]

Intel & Germany…..two are going in the same direction

[lindavid]

Intel have been in Ireland for 40 years - they are ingrained in the society and educational system (which they rely on). Ireland won it from Scotland in the eighties because of tax breaks and government lobbying. I worked for Intel btw.

[riturajborah]

Good luck getting international experts to move to deep east Germany, especially a political city like Magdeburg. They will be impressed by the warmth and friendliness of a section of the locals.

[JK-zwec]

This happens in the US, too. These semi fabs are extremely expensive and a bet on future demand and type. Intel has built chip plants in the US over the last two decades that it never used.

[RainFS]

Meanwhile, in Japan, the opening ceremony for the newest TSMC Kumamoto plant took place as scheduled on February 24, 2024. Land prices in the area are soaring.

[テレビプレミアム-qd]

This comes after Germany committed to unprecedented subsidies and tax breaks for Intel. Humiliated at the world stage again

[OrdinaryOrangeCat]

last time Germany had inflation and jobs cut was really bad....

[ItsMeTheDante]

Intel is cutting dozens of thousands in headcount already wotldwide. 🤷🏻‍♂️

[no_one_caress]

Language barrier, bureaucracy, lack of skilled resources, inflation………

[rhythmandacoustics]

The guest is right. It is about cash flow. Intel doesn't have enough cash to open more fabs. They will need more cash.

[kawan]

Intel will be the new Nokia of semiconductor chip manufacturing companies.

[Gsjdujdbdv]

The people who invested in the real estate market in the area: 😢

[LambdaWave]

We can say with confidence that this fab will never see the light.

[leahcasey]

Maybe Germany can ask BYD, Geely or Huawei to build a plant there instead.

[ypyp]

Obviously it’s corporation tax and energy costs.

[diazvirdani]

*fast Germany🇩🇪 recognise Palestine country in UN. like Poland, Czechia, Spain recognised 2 country (palestine & israel).*

[GG-unhj]

I don’t think it has anything bad to do with Germany. Intel’s new plant in Columbus, OH has also been delayed by 2 years, from 2025 until 2027.