Magdeburg politicians raise concerns about possible Intel fab cancellation — plans drawn up for anchor investor withdrawal (2024)

Magdeburg politicians raise concerns about possible Intel fab cancellation — plans drawn up for anchor investor withdrawal (1)

Uncertainty regarding Intel's fab building commitment in Germany has started to ratchet up over recent days. The PC chipmaker has been preparing an expansive site for two very large advanced chip fabs near Magdeburg. However, given the context of the firm canceling investments in Italy and France last month, plus the disastrous losses announced earlier this month, the local Saxony-Anhalt state government is understandably worried. According to some reports, the local government is planning contingency moves, should Intel pull out, but without the 'anchor investor' (i.e. Intel) the whole commercial / industrial zone could collapse.

Intel's silence about its massive Magdeburg investment plans must be deafening for the local politicians. With its current financial troubles, the commitment to its multi-billion investment in Europe might be tempting for Intel to shrug off. Construction plans in the EU remain in their early stages, unlike some other building project commitments in Ohio. However, Intel CEO Pat Gelsinger has previously been bullish about the ambitious Magdeburg fabs making a big difference in Europe. This flagship investment would deliver Intel fab technology at the heart of Europe with chip technology "in the 1.5nm range," the CEO boasted earlier this year.

It is good business to have a plan B (and C, and perhaps D), so the reports of the local government preparing for an Intel U-turn on its Magdeburg investment shouldn't cause undue alarm. Whether the whole project could recover from the withdrawal of its so-called 'anchor investor' is another question. The reported contingency plan of the "marketing of the space to alternative industrial and commercial companies," sounds rather vague and weak considering what is at stake. Without Intel's presence, the big question is what other companies would want to fill spaces in the surrounding industrial area? Projected investments and rents would be seriously impacted.

One of the big concerns for the local government administration that covers the Magdeburg area is that it has already invested / committed millions of Euros in this industrial project. Golem's report quoted the Left Party leader Eva von Angern as complaining that "The state government is playing poker with Intel and investing millions without having any firm guarantee." Moreover, von Angern highlighted the dangerous prospect of Intel failing to develop at Magdeburg and the state government being left with a large bill.

Magdeburg politicians raise concerns about possible Intel fab cancellation — plans drawn up for anchor investor withdrawal (2)

One example of a large government project already underway to support the Intel-centric industrial park is a €3.9 million ($4.3 million) investment in improving State Road 50 (widening, and adding cycle lanes).

For now, those hoping for Intel to follow through in Magdeburg should perhaps comfort themselves with the old proverb 'no news is good news' as no official statement has come from Intel regarding the cancellation of its fab plans in Germany. Remember, the US chip maker is promised payments of up to about a third of the €30 billion ($33 billion) construction costs via European Chips Act funding. This is a good incentive for Intel to continue with the project, especially if it can front-load the support payments.

Magdeburg politicians raise concerns about possible Intel fab cancellation — plans drawn up for anchor investor withdrawal (3)

Mark Tyson

News Editor

Mark Tyson is a news editor at Tom's Hardware. He enjoys covering the full breadth of PC tech; from business and semiconductor design to products approaching the edge of reason.

More about tech industry

Senior Intel CPU architects splinter to develop RISC-V processors — veterans establish AheadComputingChinese scientists claim carbon nanotube transistor breakthrough — AI performance boosts from Gate All Around design

Latest

China's Unisoc launches 'world's first' open architecture RISC-V security chip
See more latest►

2 CommentsComment from the forums

  • WorkerSoft

    Someone must finally acknowledge the elephant in the room: Intel's Arrow Lake (and possibly the next arch) might have the same bug like 13 and 14 gen!!!!!

    Reply

  • husker

    "Golem's report quoted the Left Party leader Eva von Angern as complaining that "The state government is playing poker with Intel and investing millions without having any firm guarantee."
    Golem's report (quoted above) is summarized as "Wicked little Intel is tricksy and keeps its precious in its pocketses!"

    Reply

Most Popular
China's largest Core i9-14900K gaming cafe has suffered from instability issues since 2023 — the flagship store has 171 gaming PCs with Core i9-14900K chips
DeepCool products rebranded to Shaking Tank to dodge U.S. sanctions — seller blurs DeepCool logos from product renders
Steam Beta client updates release for Steam Deck and desktop client — update addresses game recording issues and some finer Steam Deck controls
Imagination shifts AI strategy and abandons NPUs — company secures $100M in financing
Raspberry Pi CatBot monitors for stray cats and texts you a photo
34-inch WQHD 180 Hz curved gaming monitor has dropped down to $249 at Amazon
IBM 7090 Mainframe up for auction with a value up to $60,000 — over 23,000 pounds of transformative transistorized milestone in computing
First Ryzen AI HX 9 370-powered mini PC reviewed, delivers solid gaming performance [Update]
Intel has a new gaming bundle for Core CPUs and Arc GPUs — Assassin's Creed Shadows for select SKUs and Star Wars Outlaws for specific laptops
Gigabyte details BIOS roll-out plan to neutralize Sinkclose vulnerability — eligible AMD CPUs should be patched by end of the month
MSI X870, X870E motherboards have an extra 8-pin PCIe power connector for next-gen GPUs — unofficially aimed at GeForce RTX 50 series
Magdeburg politicians raise concerns about possible Intel fab cancellation — plans drawn up for anchor investor withdrawal (2024)
Top Articles
Latest Posts
Recommended Articles
Article information

Author: Twana Towne Ret

Last Updated:

Views: 5713

Rating: 4.3 / 5 (44 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Twana Towne Ret

Birthday: 1994-03-19

Address: Apt. 990 97439 Corwin Motorway, Port Eliseoburgh, NM 99144-2618

Phone: +5958753152963

Job: National Specialist

Hobby: Kayaking, Photography, Skydiving, Embroidery, Leather crafting, Orienteering, Cooking

Introduction: My name is Twana Towne Ret, I am a famous, talented, joyous, perfect, powerful, inquisitive, lovely person who loves writing and wants to share my knowledge and understanding with you.