Magdeburg looks to secure new financial backers following Intel's rejection
In July 2025, Intel officially announced the cancellation of its planned chip production site in Magdeburg, Saxony-Anhalt, marking the end of a large-scale project that aimed to build two semiconductor factories and create around 3,000 jobs [1][3]. The project, initially valued at approximately 30 billion euros, had been supported by nearly 10 billion euros in government funding.
Following Intel's withdrawal, the high-tech park and facilities planned for the Intel chip factory are now seeking new tenants and investors. Despite no specific companies being publicly named as potential replacements, local authorities and economic development entities in Saxony-Anhalt are actively looking for semiconductor or other advanced technology firms to occupy the infrastructure [3].
The cancellation leaves a void but also presents an opportunity for other semiconductor manufacturers or high-tech companies that might benefit from the ready-made facilities and strategic location to consider investing in Magdeburg. The push to develop Europe's domestic chip production capability remains a priority, so it is likely that efforts will continue to attract suitable future partners or companies to the site.
The city of Magdeburg, meanwhile, aims to buy back the areas already sold to Intel and then put them back on the international market [5]. The former coalition of SPD, Greens, and FDP had justified subsidies for chip production in Germany due to strategic interest and high dependence on imports from Asia, while the new coalition of black and red in the federal government sees it similarly and speaks of incentives for more chip production and at least three new factories in Germany [2].
Minister-President Haseloff considers the exit of Intel's plans as a significant setback for Saxony-Anhalt and the European Union, while Lydia Hüskens (FDP) states that it is right not to focus solely on Intel but to develop the entire industrial park and build the necessary infrastructure [4]. Irene Bertscheck from the Leibniz Centre for European Economic Research (ZEW) in Mannheim emphasized the importance of ensuring long-term stability for settlements supported by tax money [6].
In light of Intel's decision, the Federal Government had offered state aid of 9.9 billion euros for the Intel project in 2023, but Intel would have had to contribute twice as much itself [6]. However, it appears that no budget funds have been allocated for the Intel project and no funds are planned in the Climate and Transformation Fund (KTF) [7].
Despite the challenges, the city of Dresden continues to move forward with its chip factories under construction [8]. The future of the Intel site in Magdeburg remains uncertain, but the focus is on finding a suitable replacement to maintain the region's status as a high-tech industrial hub.
References:
- Intel pulls out of €30bn German chip factory project
- German coalition government to push for more chip production
- Intel's Magdeburg chip production site: What's next for the high-tech park?
- Magdeburg's Intel chip factory: What goes next for Saxony-Anhalt?
- Magdeburg wants to buy back areas sold to Intel
- German government offers Intel €9.9bn for Magdeburg chip plant
- No budget funds allocated for Intel project
- Dresden's chip factories under construction
The void left by Intel's withdrawal from the chip production project in Magdeburg creates opportunities for other semiconductor manufacturers or advanced technology firms to consider investing and occupy the ready-made facilities. The push to develop Europe's domestic chip production capability continues, with efforts being made to attract suitable future partners or companies to the site.
