The statement could not have been clearer – and should cause unrest in Magdeburg. “Without clearer commitments from customers, I’m not going to pour billions of dollars into chip fab equipment,” he said intel-boss Pat Gelsinger (61) on Wednesday. In other words, management believes the business outlook is uncertain and is therefore questioning its multi-billion dollar growth plans and investments.
Intel wanted to have long since started building the announced chip factory in Magdeburg. Intel board member Keyvan Esfarjani recently assured that the plot of land had been bought and paid for and announced the start of construction for 2024. Then – “maybe” – the group wants to start building the factory, which the city and Saxony-Anhalt are eagerly hoping for. The factory should create thousands of jobs and could, so it is hoped, lead to further investments in the structurally weak region.
But what Esfajani also made clear: Given the uncertain demand, the financial support from the federal government is “a key factor” for Intel. Want to say: Intel continues to haggle behind the scenes for more subsidies. Now the group is even said to be asking for ten billion euros in subsidies from the state
instead of the originally agreed 6.8 billion euros. Federal Finance Minister Christian Lindner (44) then stated that the federal government was examining the matter. At the same time, the minister emphasized that the state cannot be blackmailed.
Reint Gropp (56), President of the Leibniz Institute for Economic Research Halle (IWH) criticized the demand from corporations like Intel and also Infineon keen for more government support to build factories. “We’re throwing money out the window,” he warned. Subsidies of one million euros for every job that Infineon, for example, wants to create with its planned factory in Dresden are simply too much. “Why should one still give money to such profitable companies? No gifts may be distributed,” criticized the scientist.
Intel wants to save three billion dollars in the current year
Intel, unsurprisingly, sees things differently. The Intel boss expects for that current first quarter a loss and announced not only a lower dividend due to the deteriorated economic environment, but also an austerity program and salary cuts. The group wants to save three billion dollars this year alone. He himself will also forego 25 percent of his salary in the current year. As a reminder: in 2021 the CEO around $ 180 million salary.
Against this background, the question arises as to when and whether the factory in Magdeburg can be realized at all. Sure: The new factory building, estimated by Intel to cost a total of 17 billion euros, could create several thousand jobs in the construction industry – at least for the construction phase, as Intel claims
. For the factory itself, Intel expects 3,000 permanent jobs. Intel advertises in the most beautiful colors that thousands more jobs could also be created with suppliers and partners. However, it is uncertain whether a single Lindner factory will be worth ten billion euros in tax money.
Because Intel isn’t the only one holding out, it’s just a player haggling over subsidies. had Tesla announced this week that it would streamline its battery plans for the Gigafactory in Grünheide that has already been built. Originally had Tesla boss Elon Musk announced that Grünheide, the largest battery factory in the world, was to be built near Berlin. Tesla now wants to take important steps in battery production USA relocate – because of the tax advantages.