Capital spending cuts may include German factory expected to cost $32 billion, source says

As a German this makes me sad and maybe biased, but imo that looks pretty bad to me. On the one hand Intel wants to turn around their foundry business including long term aquiring third party customers, on the other hand apparently even a subsidy of $10 billion isn’t enough to see it through. I get that a completely new location might not be ideal and in Germany there also isn’t a big semi supply chain already in place. But still if you get one third of your fab gifted and decline, what more does it take?

Progress is getting more and more expensive each node, so you’d probably want other customers and higher volume to spread out the development costs (like TSMC does). If they can’t stem the burden of building it, then ofc it can’t be helped. But it seems to me like having fewer fabs ultimately makes it harder to stay in the race longterm.