Intel’s postponement of the Magdeburg fab was made in “close coordination” with the German state — the company will reevaluate the project in two years to decide its final fate

Intel and the state of Saxony-Anhalt, whose capital city, Magdeburg, was supposed to host Intel’s Fab 29, have confirmed that both parties are still interested in the project even if Intel delayed its construction due to its financial woes. The state government of Saxony-Anhalt said that Intel’s decision on its Magdeburg factory was made in “close coordination” and “reflects the strategic orientation of both partners to jointly evaluate the framework conditions and potential schedules and adapt to market needs,” reports the German outlet HardwareLuxx (machine translated).

Despite the delay, Intel retains ownership of its Magdeburg property, and it will investigate the project again in a couple of years to “ensure optimal alignment with market demand.” Furthermore, Intel’s training program will continue, ensuring everyone involved will be supported and qualified for their programs. The company will also continue talking with local organizations and institutions through the state government.

Two top Intel executives, Naga Chandrasekaran, Executive Vice President and General Manager of Intel Foundry Manufacturing and Supply Chain, and Christoph Schell, Executive Vice President and Chief Commercial Office of Intel, recently visited the area and met with Saxony-Anhalt representatives. Schell said, “The cooperation with the state of Saxony-Anhalt is based on a joint long-term commitment to the region and on meeting the needs of our customers in Germany and throughout Europe in the future.”

The Magdeburg Fab was supposed to be Intel’s most advanced fab, slated to produce a 1.5nm chip by 2027. However, because of its financial troubles, the company moved back its operational launch from 2029 to 2030. This doesn’t guarantee that Intel will build the Magdeburg Fab, as some analysts believe it would cancel the project entirely. The company says it will conduct another evaluation in 2026 to check the feasibility of the site.

This delay also means that the company won’t receive the €10 billion subsidy that Germany allocated, with the money potentially going back to the federal government. It’s also unclear whether the company would still receive the same amount in the future or if it will need to renegotiate with the German government before it could receive funding again. But, at the very least, we’re encouraged by the fact that Intel has not abandoned its Magdeburg project yet. Hopefully, it could restart this fab once the company turns the page and returns to profitability.