Intel exit in Magdeburg: "This is not a good day for Europe"

Saxony-Anhalt's Minister President Reiner Haseloff (CDU) has described the end of Intel's plans in Germany as a bitter setback for the European Chips Act. “This is not a good day for Europe,” said Haseloff. Nevertheless, it was good that there was now clarity. It was known that Intel was in a very difficult economic situation, so the decision was to be expected.

The Federal Ministry of Economics was also not surprised. “Nevertheless, it is not good news for the affected region,” said a spokesperson when asked by heise online. None of the planned almost ten billion euros in subsidies has yet been paid out. They are also not currently included in the budget. “Due to the postponement of the project by two years announced by Intel in 2024, no funds were earmarked for 2025.”

“Just in time”

In the view of one economic researcher, the decision by chip manufacturer Intel to turn away from the project has therefore come just in time. “It would have been worse if the ten billion euros had already been paid out,” said Irene Bertscheck from the Leibniz Centre for European Economic Research (ZEW) in Mannheim, referring to the planned government funding.

“If you look at the past few months, then this decision by Intel really comes as no surprise,” Saxony-Anhalt Economics Minister Sven Schulze (CDU) also told MDR. On the one hand, Intel obviously has very serious internal problems. On the other hand, there is now Donald Trump's “America First” policy in the USA. “Both are bad conditions for Intel investments in Europe.”

Haseloff continues to focus on attracting high-tech companies to Magdeburg. “All the measures that Saxony-Anhalt has initiated with Intel in mind will also pay off in the future,” emphasized the Minister President. There have been inquiries from well-known companies for the development of the planned high-tech park.

Buying back land

The city of Magdeburg would now like to buy back the land earmarked for the Intel site to be able to offer it to other interested parties. According to a statement from the state capital of Saxony-Anhalt, contact is already being made with the company. The aim is to subsequently place the site on the international market again. “The site is ideally suited for the establishment of a large company.” Meanwhile, the site was earmarked for agriculture again.

The fate of the land sold to Intel must be clarified quickly, emphasized Saxony-Anhalt Infrastructure Minister Lydia Hüskens (FDP). “The existing areas offer huge potential for the further development of our state.” The areas should “under no circumstances become an object of speculation.” Together with the “High-Tech Park,” i.e., the area around the planned settlement, Saxony-Anhalt has one of the largest immediately usable industrial areas. “We should use this asset.”

IG Metall sees the end of the planned Intel factory in Magdeburg as a “setback” for the location. “The challenge now is not to simply accept the vacuum that has been created but to develop new perspectives,” said Thorsten Gröger, District Manager of IG Metall Lower Saxony and Saxony-Anhalt. The rejection should not lead to industrial policy ambitions for Saxony-Anhalt or the federal standard as a whole being called into question.

(vbr)