Intel also said it would halt its projects in Malaysia, but said its plans in the United States would not be affected.
The news comes on the same day the company announced it will receive up to $3 billion in direct funding from the U.S. government to manufacture semiconductors.
This is part of efforts to “secure the domestic chip supply chain,” Intel said, adding to others such as working with the Department of Defense to improve the resilience of U.S. technology systems.
Construction of the plant in Germany was due to begin in 2023, but stalled when the war in Ukraine triggered inflation.
After back-and-forth over funding for the project between German officials and the company, Germany increased its grant by around $3.3 billion more than it initially offered in June 2023. In Poland, Intel had received $1.8 billion to set up a semiconductor factory near Wroclaw.
Intel CEO Pat Gelsinger said in a statement that the Ireland factory, which recently increased capacity, would remain the company’s “principal European hub for the foreseeable future.”
Following a shortage of supplies from Asia caused by the Covid-19 pandemic and a high dependence on Russia’s war in Ukraine, European Union countries are trying to boost the production of semiconductors, an essential technological element used in everything from fighter planes to smartphones and artificial intelligence.
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