Overview

• Intel has officially cancelled its plans to build chip factories in Magdeburg and Poland after reporting a $2.9 billion Q2 loss and stagnant revenue of $12.9 billion.
• The €30 billion Magdeburg project, which was to create 3,000 jobs with €9.9 billion in German subsidies, will not proceed and no state funds have been disbursed.
• CEO Lip-Bu Tan’s new austerity strategy prioritizes capital discipline and has also prompted a slowdown of Intel’s Ohio expansion.
• Saxony-Anhalt Minister-President Reiner Haseloff described the decision as a “painful day” and is now seeking alternative high-tech tenants for the 400-hectare site.
• Local proposals, including FMC’s memory-chip plant, are emerging as a plan B to safeguard semiconductor investments in the region.