Magdeburg seeks to host a new chip manufacturing plant instead of Intel
Magdeburg Courts Brenner Chip Factory
Plans for an Intel chip manufacturing facility in Magdeburg have been postponed until 2026. Instead, another semiconductor company, Ferroelectric Memory Company (FMC), is considering setting up shop in the Elbe city.
Magdeburg, the state capital, is reportedly a attractive location for chip factories, following in the footsteps of Saxony-Anhalt.
Key Points
- Magdeburg is a possible location for an FMC chip factory.
- FMC is pursuing €1.3 billion in funding.
- The German government has allocated €2 billion for chip funding.
- FMC aims to produce chips that consume 1,000 times less electricity and cost significantly less than conventional semiconductors.
- Magdeburg was previously engaged in discussions with Intel for a chip factory.
The Handelsblatt reports that FMC is seeking a production site in Germany, with Magdeburg, Pirna, and Frankfurt (Oder) currently in contention. Although Intel had originally planned to construct a factory in Magdeburg, construction was put on hold in 2024, leaving the land available for other potential manufacturers.
FMC is a start-up founded by the Technical University of Dresden, specializing in memory chip production. The company hopes to enter the market to reduce Europe's dependency on foreign chip suppliers. According to FMC, their chips will consume 1,000 times less electricity, boast 1,000 times faster processing speeds, and cost ten times less than traditional semiconductors.
Background
Germany has been actively promoting its role in the semiconductor industry, with a focus on supporting domestic chip manufacturers as part of a broader strategy to increase European semiconductor production. The German government has been investing significant funds in semiconductor projects, with the aim of reducing dependence on overseas suppliers and bolstering local manufacturing capabilities. However, specific details regarding the funding status for an FMC chip factory in Magdeburg are not provided in the available information.
As the competition for government funding in the semiconductor sector is fierce, projects are typically evaluated based on their potential contributions to technological advancements, job creation, and economic growth. With Germany's strong engineering and manufacturing capabilities, the country is an appealing location for semiconductor manufacturing investments.
Photo Credit: Klaus-Dietmar Gabbert/dpa
Further Reading:
- Over €20 million in unpaid taxes in Saxony-Anhalt
- Chemical-free progress: Innovative company starts in Magdeburg
- Clear-cut at Intel: Tech giant aims to slash 20 percent of jobs
FMC, a start-up specializing in memory chip production, is considering setting up a production site in Magdeburg, a city known for its attractiveness to chip factories. The company aims to enter the market with chips that consume 1000 times less electricity and cost ten times less than traditional semiconductors, contributing to technological advancements and potentially the finance industry through reduced dependency on foreign chip suppliers.
