Optimism despite Intel's withdrawal: Germany remains committed to its semiconductor strategy

The German Vice Chancellor Robert Habeck emphasized that the decision by the US tech giant Intel to delay its plans for building a large chip factory in Germany will not affect the federal government's strategy to strengthen semiconductor production in Europe. Habeck stated on Tuesday that Intel's decision was based on corporate guidelines and "financial requirements," but the German government had done its "homework" to attract chip manufacturers. He expects an imminent approval from the European Commission for the German subsidy program to support the sector and stressed that Germany's goals remain unchanged despite Intel's decision, which was announced on Monday. "Overall, the strategy is not focused on a single company but on ensuring economic security, maintaining a certain level of expertise in this critical industrial sector in Europe, and not being 100 percent dependent on Southeast Asian markets," said Habeck, a member of the Green Party. The German government plans to subsidize the Intel factory in the city of Magdeburg with around 10 billion euros ($11 billion). The money is expected to come from Germany's Climate and Transformation Fund (KTF), which is intended for both environmental projects and the promotion of important technologies. Approximately 4 billion euros from the KTF were allocated for Intel in this year's budget. "We will discuss behind the scenes in the government how to proceed with the reserved funds," said Habeck.