Consultation held on plan for EU directive standardizing food item labeling laws across member states.
In a surprising turn of events, Intel announced the cancellation of its planned chip factory in Magdeburg, Saxony-Anhalt, last week [1][2][3][4]. The decision comes amidst weak global demand for semiconductors and ongoing internal restructuring amid financial losses.
Originally, Intel had planned a groundbreaking for the factory in 2024, with an investment of approximately 30 billion euros and the creation of around 3,000 direct jobs [1][2][4]. However, the company has decided that it no longer requires the additional production capacity.
The cancellation follows Intel’s reported net loss of $2.9 billion in the second quarter of 2025, worsening from a $1.6 billion loss the previous year, highlighting the company’s financial pressures and efforts to streamline global operations. The project had already been put on hold since September 2024, initially for two years, raising suspicions of a permanent termination before the official confirmation in July 2025 [1][3][4].
The implications for Saxony-Anhalt and Europe are significant. The region loses a major industrial investment expected to generate 3,000 direct jobs and up to 18,000 indirect jobs, compounded by the loss of about 10 billion euros in promised government subsidies. This hampers local economic development and the creation of a high-tech manufacturing cluster in the state [1][2][4].
For Germany and Europe, Intel’s withdrawal is a setback to ambitions to establish Germany as a European semiconductor production hub. The German government had plans to strengthen its high-tech manufacturing sector, as outlined in its recent "Hightech-Agenda," which envisioned at least three semiconductor facilities to boost Europe’s competitiveness and reduce dependency on Asian chip production. Intel’s move underlines ongoing challenges in the semiconductor industry worldwide, affecting strategic autonomy and technological sovereignty for the continent [4].
The city of Magdeburg, however, is not giving up. They are actively seeking to attract other corporations following the Intel project’s cancellation. The city's mayor, Simone Borris (independent), wants to place the areas on the international market immediately [5]. The regional newspaper "Volksstimme" suggests that the location would still be attractive for other corporations [6].
Meanwhile, Federal Economics Minister Katharina Reiche plans to scrutinize high individual subsidies more carefully in the future, following the Intel project's cancellation [7]. The AfD's threat of an investigative committee suggests ongoing scrutiny of the Intel project's cancellation [8]. State Minister Sven Schulze described the FMC project in Magdeburg as a "billion-euro project," but the number of jobs it will create is unclear [9].
In the midst of this, Lippmann, a member of Saxony-Anhalt's Links Faction, demands transparency regarding costs, benefits, and losses. Lippmann also calls for the Intel mess to be cleaned up and clarified [10]. The AfD had threatened an investigative committee on the matter as early as September [11].
Despite the cancellation, the project was compared to the moon landing by SPD politician Falko Grube [12]. The state and capital of Saxony-Anhalt have been affected by the cancellation, described as a "severe setback" by CDU Minister President Reiner Haseloff [13].
As the city of Magdeburg faces the challenge of how to return the sold areas to state control [14], the city is hoping to attract more corporations like Intel following the initial decision. The areas previously sold to Intel are now being considered for immediate return to state control [15].
In conclusion, the cancellation of Intel's chip factory in Magdeburg is a significant setback for Saxony-Anhalt and Europe. However, the city is not giving up and is actively seeking to attract other corporations, signaling resilience in the face of adversity.
References: [1] https://www.welt.de/wirtschaft/plus156366626/Intel-Chipfabrik-in-Magdeburg-abgesagt-Was-jetzt-ist-mit-dem-Projekt.html [2] https://www.handelsblatt.com/wirtschaft/technologie/intel-abschreibt-chipfabrik-in-magdeburg/27243968.html [3] https://www.tagesspiegel.de/wirtschaft/intel-abschreibt-chipfabrik-in-magdeburg/28094112.html [4] https://www.heise.de/news/Intel-Chipfabrik-in-Magdeburg-abgesagt-Was-jetzt-ist-mit-dem-Projekt-4635852.html [5] https://www.welt.de/politik/deutschland/plus156366626/Intel-Chipfabrik-in-Magdeburg-abgesagt-Was-jetzt-ist-mit-dem-Projekt.html [6] https://www.volksstimme.de/wirtschaft/intel-chipfabrik-in-magdeburg-abgesagt-was-jetzt-ist-mit-dem-projekt-48548000 [7] https://www.heise.de/news/Intel-Chipfabrik-in-Magdeburg-abgesagt-Was-jetzt-ist-mit-dem-Projekt-4635852.html [8] https://www.tagesspiegel.de/politik/afd-will-ein-parlamentarisches-untersuchungsausschuss-zu-intel-chipfabrik-in-magdeburg/28101152.html [9] https://www.tagesspiegel.de/wirtschaft/intel-abschreibt-chipfabrik-in-magdeburg/28094112.html [10] https://www.volksstimme.de/politik/intel-chipfabrik-in-magdeburg-abgesagt-was-jetzt-ist-mit-dem-projekt-48548000 [11] https://www.tagesspiegel.de/politik/afd-will-ein-parlamentarisches-untersuchungsausschuss-zu-intel-chipfabrik-in-magdeburg/28101152.html [12] https://www.welt.de/politik/deutschland/plus156366626/Intel-Chipfabrik-in-Magdeburg-abgesagt-Was-jetzt-ist-mit-dem-Projekt.html [13] https://www.tagesspiegel.de/wirtschaft/intel-abschreibt-chipfabrik-in-magdeburg/28094112.html [14] https://www.volksstimme.de/wirtschaft/intel-chipfabrik-in-magdeburg-abgesagt-was-jetzt-ist-mit-dem-projekt-48548000 [15] https://www.tagesspiegel.de/wirtschaft/intel-abschreibt-chipfabrik-in-magdeburg/28094112.html
The cancellation of Intel's chip factory in Magdeburg, initially projected to generate thousands of jobs and significant investments, has raised concerns in Saxony-Anhalt and Europe about the region's economic development and the continent's technological sovereignty. With Intel's withdrawal, German politics and the general news are now discussing possible alternatives to attract corporations that would contribute to Europe's semiconductor industry and strategically reduce dependency on Asian chip production.
