HardwareProcessorsIntel announces it will ‘pause’ plans for a manufacturing megafab in Germany due to ongoing money troubleWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

HardwareProcessorsIntel announces it will ‘pause’ plans for a manufacturing megafab in Germany due to ongoing money troubleWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

(Image credit: Intel Corporation)

A rendering showing the early plans for two new Intel processor factories in Magdeburg, Germany.

With plans to trim $10 billion from its budget, Intel is halting plans to build a cutting-edge foundry in the green fields of Magdeburg, Germany for around two years. The facility was originally intended to start construction in 2023, with production beginning in late 2027.

“Now that we have completed our transition to EUV, it’s time to shift from a period of accelerated investment to a more normalized cadence of node development and a more flexible and efficient capital plan,” Gelsinger said in the note.

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The leadership team of Intel Foundry will be able to make their own decisions and work independently of Intel Product, though it will still report to Pat Gelsinger.

Your next upgrade(Image credit: Future)Best CPU for gaming: The top chips from Intel and AMD.Best gaming motherboard: The right boards.Best graphics card: Your perfect pixel-pusher awaits.Best SSD for gaming: Get into the game ahead of the rest.

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(Image credit: Future)Best CPU for gaming: The top chips from Intel and AMD.Best gaming motherboard: The right boards.Best graphics card: Your perfect pixel-pusher awaits.Best SSD for gaming: Get into the game ahead of the rest.

(Image credit: Future)

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An immediate glimmer of hope for the foundry team will be that Amazon just signed up to a “multi-year, multi-billion-dollar framework” that includes wafers out of Intel’s fabs. Otherwise, it still needs to draw in more clients and improve its offerings to really appeal to customers that might otherwise side with the world’s largest foundry, TSMC.

Even Intel in recent years has sided with TSMC for many of its products, including its Alchemist GPUs and, more recently, itsLunar LakeandArrow Lake processors.

Intel Foundry is putting itshope into 18A, the next process node and its next big technological leap for manufacturing. Meanwhile, Intel is incorporating itsmobile, power-efficient chip designsthat are taking the fight to Arm and Qualcomm into the desktop with Arrow Lake later this year. If it can turn these around with high yields, good performance, and no morechip-breaking bugs, it might get out of the woods yet. There are just a lot ofifshanging over its head right now.

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Tencent HQ

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