U.S. Corporation is cutting costs; says Ireland is the most important location in Europe.
U.S. technology company Intel will temporarily postpone its plans to build two chip factories in Magdeburg, Germany. In a statement, CEO Pat Gelsinger speaks of a delay of about two years, with plants in Poland also being affected. For the time being, Ireland will remain the most important European location, where capacity has been increased, according to the executive.
The Magdeburg project was announced in spring 2022 as part of an $80 billion investment package. Meanwhile, Intel has imposed a cost-saving program to create a “more competitive cost structure.” By 2025, the company aims to save ten billion dollars, which includes cutting 15,000 jobs, representing 15 percent of the workforce, Gelsinger announced last August.
In Magdeburg, the capital of the German state of Saxony-Anhalt, investments of more than 30 billion euros were initially planned, with 3,000 jobs to be created. Last year, German Chancellor Olaf Scholz referred to this as the largest foreign direct investment in German history, one that would help Germany reach the forefront of global technology. Nearly ten billion euros in government subsidies were earmarked for the company’s venture.
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