May 30th, according to Volksstimme, the construction of Intel’s Fab 29 module 1 and module 2 near Magdeburg, Germany has been delayed due to pending approval of EU subsidies and the need to remove topsoil for reuse at other locations. The new start date is expected to be delayed until May 2025. If Intel can quickly complete construction and equipment installation, the factory could still begin production on schedule between the end of 2027 and early 2028.
As early as June 2023, Intel reached an agreement with the German federal government, announcing a revised letter of intent to invest over 30 billion euros to build two new wafer fabs in Magdeburg. The German federal government agreed to provide a 10 billion euro subsidy, including incentives and subsidies from the European Chips Act and the government.
The original plan for Intel’s Fab 29 module 1 and module 2 was to start construction in the second half of 2023, but delays in subsidies pushed this to the summer of 2024. Subsequently, German Finance Minister Michael Richter intervened to ensure Intel received the necessary funds. However, the EU Competition Authority has not yet approved the nearly 10 billion euro subsidy for the 30 billion euro project, causing construction delays. Therefore, the topsoil removal work has also been delayed to May 2025. It is reported that the state and Intel are adjusting their plans accordingly, focusing on infrastructure construction and land acquisition to prepare for the construction delay.
Due to the high-quality topsoil at the chosen site, it must be carefully removed and reused according to legal requirements. The local state government will be responsible for removing the top 40 centimeters of soil, equivalent to 80,000 truckloads of soil, while Intel will handle any additional soil removal beyond this depth. This process is crucial for complying with environmental and building regulations.
Infrastructure construction is also a significant part of the project. The city of Magdeburg will build an access road from B 81 to the Intel plant by July 2024. Following this, the state will begin constructing the main route between Magdeburg and Wanzleben in August 2024, with completion expected in April 2025. This will facilitate the transport of soil and building materials.
Land acquisition is also underway, with the German state-owned development company High Tech Park (HTP) purchasing 450 hectares of land for supplier settlements. Most landowners are willing to sell, and the government offers 25 euros per square meter, much higher than typical agricultural land prices.
Intel has previously submitted schematics for the Magdeburg wafer fabs in Germany, showing that the initial two wafer fabs, Fab 29 module 1 and Fab 29 module 2, will be equipped with the world’s most advanced semiconductor tools—High-NA EUV lithography machines. Additionally, Intel has reserved enough space to potentially build six more wafer fabs. The first two wafer fabs are expected to be operational in the fourth quarter of 2027, with the advanced Intel 14A and Intel 10A nodes included in the plan.
Therefore, the two Fab 29 wafer fabs were originally planned to start operations at the end of 2027 and launch client chip products in the second half of 2028. Now, with the construction delay, this may directly affect the mass production timeline of the wafer fabs. Although Intel can speed up the progress later, the schedule will be very tight. Reports indicate that Intel now estimates “building these two wafer fabs may take four to five years,” potentially starting production between 2029 and 2030.
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