News of US semiconductor giant Intel delaying plans to build a mega chip-making plant in Germany has disappointed Chancellor Olaf Scholz. The delay has caused tensions within the ruling coalition over the fate of 10 billion euros in subsidies allocated for the project. Despite the setback, Scholz remains hopeful as Intel has expressed long-term commitment to the project.
The news comes after Intel announced a postponement of the project in Magdeburg and Poland due to lower demand. The construction work was expected to begin in 2023 but was delayed due to the inflation caused by the Ukraine war. Talks on financing for the project were ongoing before a deal was signed in June 2023.
Despite challenges faced by Intel, Scholz emphasized the importance of semiconductor production in Europe to ensure technological leadership. While the use of public funds for the Intel project remains uncertain, tensions arise within the coalition on how to allocate the subsidies.