“Intel postpones construction of German chip factory until 2025” – IT Pro – News

Construction of Intel’s German chip factories may be delayed again. Construction will be postponed to May 2025, Volksteam reports. Initially, Intel was expected to start building its first chip factories in Germany in the first half of 2023.

building Delayed, according to Volksstimme Because some soil must first be removed. The site of Intel’s German factories, near the city of Magdeburg, contains black soil, also known as chernozem. This soil is rich in humus and is very fertile. According to German legislation, the soil must first be removed so that it can be reused, for example in agriculture. The first 40 centimeters will be removed by the government, which is equivalent to “80,000 truckloads.” The black soil is said to be ninety centimeters deep in some places. Intel must pay the costs of removing that soil itself.

However, the chipmaker has not yet received approval for the support the German government wants to contribute. The chipmaker is expected to receive 10 billion euros from the German government, but the European Commission has not given the green light for that yet. Intel does not want to begin construction until approval is received.

Strict rules on state aid usually apply in the EU. European chip law allows for exceptions, but there are conditions to this. For example, subsidies may only be used to fill “confirmed financing gaps,” to prevent companies from receiving more subsidies than necessary.

Intel previously stated that the intended support of ten billion euros covers about a third of total factory costs. The manufacturer initially wants to establish two advanced chip factories in Germany, something that will cost a total of thirty billion euros. The intended support contribution is relatively in line with other projects receiving support under the European chip law. For example, TSMC is receiving five billion euros in subsidies for a ten-billion-euro chip factory, although this support contribution has not yet been approved by the European Union.

According to Volksstimme, the opening of factories may also be postponed. When it was announced in 2022, Intel actually said the first German factories would be operational in 2027. Intel itself expects “four to five years” to be needed to build the factories, according to documents seen by Volksstimme. This suggests an opening in 2029 or 2030.

Construction of Intel’s first chip factories in the German city of Magdenburg was initially expected to begin in the first half of 2023. This was actually postponed to 2024 last year, partly due to disagreement over how much support the German government would contribute. . The start of construction has now been postponed for another year. Intel will produce the chips in factories on the “most advanced nodes” the company will offer when it opens. The chipmaker is planning a 10A node at the end of 2027, which will correspond to a 1nm process.