The American chip manufacturer Intel is postponing the construction of new chip factories near the German city of Magdeburg. This was reported by the local newspaper Volksstimme.
The construction of the two facilities involved an amount of 17 billion euros. Construction should start in the middle of next year.
But according to Volksstimme, the costs have now risen to 20 billion euros, and Intel, therefore, wants more financial support from the German government to construct the factories. So far, Germany has pledged €6.8 billion in subsidies. According to the newspaper, Intel now has no date for the construction of the locations.
In a statement, Intel said a lot has changed since the build announcement in March this year. The company points to increasing geopolitical tensions, high inflation and weakening demand for semiconductors, among other things. Intel says it will monitor the situation and adjust investments to market developments.
The European Union has set a target to produce one-fifth of all chips globally by 2030 to be less dependent on Asian suppliers.
