Business Sector - Intel's planned chip factory experiences construction delays.
During the planning stages for Intel's upcoming chip factories in Magdeburg, there are delays in the works. According to an article published in the "Magdeburger Volksstimme" on Wednesdays, the excavation of the mother soil won't commence before May 2025 at the earliest. Earlier this year, a call for tenders for these tasks was released by the state government, yet it seems that the process is dependent on the EU notification procedure.
The Finance Ministry revealed in response to a request that the process will be conducted in partnership with Intel, awaiting approval from the EU. Last year, the federal government granted state aid of 9.9 billion euros for this settlement, which remains subject to confirmation by the EU.
The spokesperson from the Finance Ministry mentioned that the state government is constantly communicating with Intel, the Federal Ministry of Economics, and the EU Commission. They are closely collaborating to expedite the process. Previously, Intel expected the commencement of construction of the chip factories in Magdeburg towards the end of 2024.
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- The construction delays in Intel's planned chip factory in Magdeburg could potentially impact the entire computer industry in Saxony-Anhalt and beyond, as the facility was expected to contribute significantly to the region's technological advancement.
- The EU authorities are closely monitoring Intel's construction process in Magdeburg due to the delayed start of excavations, ensuring compliance with all necessary regulations and notifications.
- Despite the Challenging delays, the spokesperson for Intel reassured the authorities and the state government that they are committed to adhering to the planned schedule for the completion and operation of the Magdeburg chip factory by the end of 2026, as per the original agreement.
- Regardless of the delays in the Intel chip factory construction, the EU's approval of the state aid granted towards this project's establishment in Magdeburg, Germany, remains crucial for the global tech giant's continued expansion and growth in the European market.
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