(Berlin, 20th) – Facing significant financial losses, Intel has taken drastic measures, including selling a 49% stake in an Irish plant and liquidating its shares in Arm Holdings, raising a total of $11.147 billion this year. The company has also suspended key investment projects across Europe, including those in France and Italy. Concerns are now growing over Intel’s silence on its planned investment in Magdeburg, Germany, where local authorities are preparing emergency contingency plans.
To ease its financial burden, Intel has paused several overseas investments, including chip manufacturing projects in Israel, France, and Italy. The company has also been selling off assets to increase its cash reserves. Recently, Intel sold its shares in Arm for approximately $147 million, and in June, it sold a 49% stake in its Irish chip plant for $11 billion. These sales alone have brought in $11.147 billion this year.
As for the German plant, Intel announced in 2022 that it would build two semiconductor fabs in Magdeburg, central Germany, with construction originally set to begin in the first half of 2023. Intel CEO Pat Gelsinger had expressed high hopes for the Magdeburg plant, predicting it would have a significant impact in Europe with its planned 1.5-nanometer process. However, Intel has since remained silent on its large-scale Magdeburg investment.
In response to Intel’s financial troubles, local authorities in Germany are preparing emergency measures to cope with a potential withdrawal by Intel. According to a report by Tom’s Hardware, the absence of Intel as a “major investor” could cause the collapse of the entire commercial and industrial zone in Magdeburg.
The report suggests that if Intel pulls out, one of the German government’s contingency plans would be to market the space to other industrial and commercial companies. The local government has already invested millions of euros into the Magdeburg industrial project. Leaders from the Left Party have criticized the state government for investing millions without firm guarantees from Intel, warning that Magdeburg’s development could end in failure, leaving the government with a hefty bill.
The report also notes that Intel has not made any official statement on the matter. The company had been awarded a €30 billion subsidy under the European Chips Act, which might entice Intel to continue with the project if the funds are paid in advance.
