Intel wants to settle chip factory in Magdeburg

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Chips from the US company Intel are soon to be manufactured in Magdeburg

Photo: Paul Sakuma/ AP

In the coming days, Magdeburg could be awarded a multi-billion dollar chip factory by the US group Intel.

Corresponding media reports were confirmed in principle to the German Press Agency by a person familiar with the matter.

Other media have also reported on the plans, including the “Frankfurter Allgemeine Zeitung”, the “Magdeburger Volksstimme” and the MDR.

According to dpa information, the federal government has held talks about a planned billion-euro investment by Intel near Magdeburg.

There is a high financial support from the federal government in prospect.

When looking for a location, Germany prevailed in Europe and East Germany on a national level.

The traffic light parties had already laid the foundation for this in the coalition agreement, it said.

It says: »We want to make Germany a global location for the semiconductor industry.

To this end, the German semiconductor industry should also be given sufficient financial support along the entire value chain in order to secure, strengthen and expand this key technology in Europe in a future-proof manner.«

The economics ministries of Saxony-Anhalt and the federal government as well as Intel declined to comment.

Like the entire industry, the group is benefiting from high demand for chips, which increased sharply after the pandemic shock.

In January, Intel announced plans to build two new factories in the US state of Ohio for more than $20 billion.

Group CEO Pat Gelsinger's strategy includes making Intel a contract manufacturer that produces chips for other suppliers in addition to its own processors.

The group has been looking for a location for a new factory in Europe for some time.

jso/dpa