Intel remains committed in Germany despite construction delays

Chancellor Olaf Scholz confirmed on Tuesday that Intel remains committed to its plan to build factories in eastern Germany, despite the U.S. chipmaker's announcement to delay the construction by two years as part of cost-saving measures. Scholz emphasized that the decision to postpone the project in Germany by two years also includes the intention to proceed with it. He underscored the importance of this opportunity in the volatile semiconductor industry to ensure that Germany's already significant capacities are further expanded. Intel CEO Pat Gelsinger outlined a series of steps the company will take to rejuvenate itself in a memo to employees on Monday, including the suspension of the construction of the project in Germany for two years. Economy Minister Robert Habeck stated on Tuesday that it was a business policy decision and reaffirmed Germany's commitment to expanding semiconductor production in Europe. The Ministry of Economy stated that it is now up to Intel to quickly return to an investment path. Intel's decision also triggered a new budget dispute within the governing coalition. The Ministry of Finance demanded that the funds no longer required for Intel subsidies be used for budget consolidation, while the Ministry of Economy disagreed.