Intel sticks to German plant project despite delay – Scholz

German Chancellor Olaf Scholz assured that Intel remains committed to its plans for building semiconductor plants in eastern Germany, despite the company’s decision to delay construction by two years.

Scholz emphasised the importance of continuing the expansion in the volatile semiconductor sector, aiming to bolster Germany’s semiconductor capacities.

Intel CEO Pat Gelsinger announced the delay in a memo, citing cost-cutting measures.

German Economy Minister Robert Habeck stressed the need for Intel to resume investment plans promptly while also navigating a budget dispute within Germany’s ruling coalition over the reallocation of unused subsidy funds.

Scholz noted that the coalition will review how to use these funds effectively, with some economists suggesting the money be redirected towards tax reform or investment incentives to support broader economic growth.