US chipmaker Intel hopes to start early next year with the construction of its new semiconductor plants in Magdeburg in eastern Germany. “We plan to do groundbreaking work in the first half of 2023 and are optimistic that the EU Chips Act will also be passed during this period,” said Bernd Holthaus, Intel’s HR manager in Germany.
Chips will be produced in Magdeburg from 2027. In an initial expansion phase, two neighboring semiconductor plants will be built, which could provide several thousand jobs. Intel initially wants to invest around 17 billion euros in this.
EU countries want to agree in December
Whether the European Chip Act – a bill that should mobilize tens of billions for the chip industry – will also be passed in Brussels so quickly, remains to be seen. The aim of the EU countries is to agree on their position in December, as the Czech EU Council presidency announced to the dpa. “This will be the starting point for negotiations with the European Parliament on the final text of the chip legislation,” said a spokesperson.
However, Parliament must determine its position in advance and only in the next step would the two institutions negotiate what would probably be a final compromise. It is impossible to say with certainty how long the process will take. All those involved are aware of the importance of the project, but it cannot be ruled out that the negotiations could drag on for months. “An agreement at the end of the first quarter of 2023 is theoretically possible, but also very ambitious,” said Groen MEP Henrike Hahn.
European catching up in chips
With the law, the EU wants to prevent Europe from falling further behind Asia and America in the production of microchips. For example, certain new semiconductor factories should be more easily supported by subsidies. State aid to companies in the EU is really only possible in exceptional cases so that competition is not distorted.
Overall, Intel is hoping for generous government support to close the cost gap to other potential locations. According to the company, this is the only way to make these investments profitable in Europe. The German federal government wants to support the settlement in Magdeburg with an amount of billions. By 2024, a total of 6.8 billion euros should flow, of which 2.7 billion in the 2022 budget alone.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
