According to the sources, Intel is postponing the construction of its chip factory in Germany until 2025 at the earliest. The reason: fertile soil on the site, which Intel must first remove.

Intel announced in spring 2022 that it would build its first European chip factory. Two years later, the foundation stone has yet to be laid, and it does not seem likely that this will happen in any significant time. The German newspaper “Volksstimme” writes that the start of construction will be postponed until 2025.

Black Earth

Black soil was found at the site chosen by Intel near Magdeburg. This type of soil has fertile properties and Intel must ensure that this soil is carefully removed before it can be reused elsewhere. According to Volksstimme, this is not just a bit of soil, but at least 80,000 cargo loads. You couldn’t do that in a day, even if you’re Intel.

What also doesn’t help is that Intel still has no guarantee that the promised subsidies from the federal government will even temporarily end up in its bank account. After long negotiations, Intel managed to obtain ten billion euros, which it can use to finance about half of the total costs. However, “irregularities” in the German budget are jeopardizing the approval of the subsidy.

To add to the financial wound, Intel will also have to cover most of the costs of removing the soil itself. The government is willing to cover the first forty centimeters, and Intel will cover anything below that. In some places, the black soil is said to be up to ninety centimeters deep.

A postponement is not an adjustment

Construction of the factory was normally scheduled to begin in the first half of 2023, but this new setback means that Intel will not be able to start until 2025 at the earliest. This will also delay the opening and commissioning of the factory by several years.

The grand opening was originally planned for 2027, but that now sounds anything but realistic. If the first Intel chip manufactured in Germany rolls off the production line before 2030, it will already be a success.

Great importance for Europe

It is to be hoped that Europe will make some progress from now on. The arrival of Intel in Europe is strategically invaluable for the European technology industry. As part of the Chip Law, the European Union wants to reduce dependence on Asia and the USA and boost the production of chip technology on its own soil.

To do this, it is trying to lure the big players to Europe. TSMC is also considering a chip factory in Germany, but like Intel, it is waiting for the promised money to start.