Intel's Germany 1nm Chip Plant Start Delayed to 2025

According to a report by Volksstimme, the onstruction of Intel's Fab 29 Module 1 and Module 2 near Magdeburg, Germany, has been postponed due to pending EU subsidy approvals and the requirement to relocate topsoil for reuse. The new projected start date for construction is now May 2025. If Intel can expedite the construction and equipment installation processes, the plant may still begin operations between late 2027 and early 2028.

Initially, the plant's construction was scheduled to commence in the first half of 2023. However, delays in subsidy approvals have pushed the start to the summer of 2024. In response, Germany's Finance Minister, Michael Richter, has been advocating vigorously for Intel to secure the necessary funding. In 2023, the federal government approved €9.9 billion in state aid as part of Intel’s €30 billion project subsidy, pending EU confirmation.

Additionally, the topsoil at the construction site, which needs to be carefully removed and reused, won't be cleared until May 2025. The state government announced the tender for this project in March. Both the state and Intel are adjusting their plans accordingly, focusing on infrastructure development and land acquisition to accommodate the construction delay.

The initial plan was for Fab 29.1 and Fab 29.2 to begin operations by the end of 2027, utilizing advanced manufacturing processes such as Intel 14A (1.4nm) and Intel 10A (1nm) nodes. However, Intel now estimates that building these factories will take four to five years, pushing the production start to 2029 or 2030.

The construction site features high-quality topsoil, which must be carefully removed and reused in compliance with legal regulations. The state government will handle the removal of the top 40 centimeters of soil, while Intel will manage the deeper layers. This process is crucial for adhering to environmental and construction regulations.

Infrastructure development and land acquisition remain key components of the project. A public hearing regarding Intel’s chip plant plans is scheduled for May 29, addressing 13 objections raised by associations, private entities, and the Burgstall municipal government. The state remains optimistic that the project will proceed smoothly once EU approval is secured.