Robert Habeck reacts as US based Intel suspends plans to build major chip factory in Germany

Admin l Tuesday, Sept 17, 2024

 

BERLIN – German Vice Chancellor Robert Habeck has said that US tech giant Intel’s decision to postpone plans to build a major chip factory in Germany won’t change the government’s strategy around building up semiconductor production in Europe.

Habeck on Tuesday said Intel’s decision had to do with corporate policy and “financial requirements,” but that the German government has “done our homework” on attracting chipmakers.

Habeck said he expects imminent European Commission approval for Germany’s scheme of state subsidies aimed at the sector, and said Germany’s goals remain unaltered despite the Intel decision, which was announced on Monday.

“After all, the strategy is not focused on a single company, but on ensuring that we have economic security, that we also have a certain level of expertise in this critical industrial sector in Europe and are not 100% dependent on south-east Asian markets,” said Habeck, a Green.

The German government plans to subsidize the Intel plant in the city of Magdeburg with around €10 billion ($11 billion).

The money is supposed to come from Germany’s Climate and Transformation Fund (KTF), which is set aside for environmental projects as well as efforts to boost important technologies.

Around €4 billion have been earmarked for Intel from the KTF in this year’s budget.

“We will discuss behind the scenes in the government how to proceed with the reserved funds,” said Habeck.