Shulou(Shulou.com)11/24 Report--

CTOnews.com, December 18 (Xinhua)-- according to German newspaper Volksstimme, Intel has abandoned its goal of building a new chip plant in the eastern German city of Magdeburg in the first half of 2023, saying the semiconductor giant wants more financial subsidies.

According to reports, due to the sharp rise in energy and raw material prices, Intel's original plan was disrupted. CTOnews.com learned that Intel's initial cost budget was 17 billion euros (about 125.8 billion yuan), but now it is reported to cost nearly 20 billion euros (about 148 billion yuan), with a huge funding gap.

Tuyuan Pixabay the plant was decided by Germany and the European Union at the height of the COVID-19 epidemic, and Europe hopes to strengthen European resilience by developing more semiconductor manufacturing operations locally to avoid long-term, cross-regional supply chain risks.

"geopolitical challenges have intensified and demand for semiconductors has fallen, which means we can't give an exact date for starting work," said Benjamin Barteder, an Intel spokesman.

At present, Intel is discussing with the local government how to close the funding "gap", "the goal has deviated in the current situation. We are working with government partners to promote a breakthrough in the project."

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