Report: Intel’s German fabs face more delays

Intel has pushed out the construction of chip plants in Magdeburg, Germany, to May next year at the earliest, according to a report from Volksstimme (link in German). The chip firm is said to be waiting for the EU to approve the state aid promised by the German government before starting to prepare the site. This includes the excavation of high-quality soil that needs to be removed for reuse according to German law. Normally, the government takes care of that, but because the layer is thicker than expected, the law mandates Intel to pitch in. The US company isn’t willing to do so until it has secured the subsidies.

Originally, construction of the fab was to start in the first half of 2023. That schedule was delayed by roughly a year when Intel petitioned the German government for additional support, which Berlin eventually granted. If construction is to start in May next year, the original plan to commence production in 2027 seems ambitious but still doable.