OFFICIAL CORRECTION/ROUNDUP: Intel hopes to start construction in the first half of 2023

(Master’s level (not: Bachelor’s level) in the penultimate paragraph. The university has corrected its information.)

MAGDEBURG (dpa-AFX) – In the coming year, the construction of the two semiconductor plants of the US chip manufacturer Intel is to begin in Magdeburg – according to the company, it is as early as possible. “We are planning to break ground in the first half of 2023 and are optimistic that the EU Chips Act will also be passed during this period,” said Intel’s Human Resources Manager in Germany, Bernd Holthaus, to the German Press Agency. To ensure that the necessary personnel are available for the planned start of production, the group relies on dialogues with the employment agencies – and with the universities. Planning is already underway at the university in Magdeburg.

Chips are to be produced in Magdeburg from 2027. In a first expansion stage, two neighboring semiconductor plants are to be built, which could create several thousand jobs. Intel intends to invest around 17 billion euros for this initially.

Whether the European Chips Act – a bill intended to mobilize tens of billions for the chip industry – will actually be passed so quickly in Brussels remains to be seen. The aim of the EU countries is to agree on their position in December, as the Czech EU Council Presidency told dpa. “This will be the starting point for negotiations with the European Parliament on the final text of the chip legislation,” a spokesman said.

Before that, however, Parliament still has to determine its position; only in the next step would the two institutions negotiate what would probably be a final compromise. How long the process will then take cannot be said with any certainty. Everyone involved is aware of the importance of the project, but it cannot be ruled out that negotiations could drag on for months. “An agreement at the end of the first quarter of 2023 is theoretically possible, but also very ambitious,” said Green MEP Henrike Hahn.

With the law, the EU wants to prevent Europe from being further dependent on Asia and America for the production of microchips. Among other things, certain new semiconductor factories should also be enabled to be more easily supported by subsidies. State aid for companies in the EU is actually only possible in exceptional cases so that competition is not distorted.

Overall, Intel hopes for generous government support in order to close the cost gap to other possible locations. According to the company, this is the only way for these investments in Europe to be profitable. The federal government wants to support the settlement in Magdeburg with a billion amount. A total of 6.8 billion euros is to flow by 2024, with 2.7 billion being estimated in the 2022 budget alone.

Even before the start of production, Intel wants to hire many employees and train some of them in other factories. “That’s training on the job,” said Holthaus. By 2027, around 3,000 employees could then be working in Magdeburg.

The area in the state capital of Saxony-Anhalt offers capacity for a total of eight factories. When it comes to recruiting skilled workers, Holthaus is not concerned. He thinks it is realistic to get the staff. “Germany has a strong history as an industrial location.”

The chip manufacturer is also hoping for young talent from the surrounding universities. “We will expand the cooperation with the universities in Magdeburg and Saxony-Anhalt – this can be done at different levels,” said Holthaus. “We want Magdeburg to become even more attractive as a university location and for many students to discover Magdeburg.” From his point of view, the facilities at the university are great – especially the clean room. In a clean room, the concentration of airborne particles is as low as possible. Even a single speck of dust in production can render a microchip unusable.

It was announced last week that the Otto von Guericke University Magdeburg is planning one or two interdisciplinary courses from the 2023 winter semester. The program will start at Master’s level, said University Rector Jens Strackeljan on Monday. Such an international study program could therefore be designed for 100-150 students. “Whether the course will be called semiconductor technology, microtechnology or nanotechnology – there is still no fixed term,” says the rector.

Intel also has an interest in skilled workers being able to gain experience in a clean room, said Strackeljan. The university could therefore support training and further education by providing the environment./cki/DP/ngu

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