Intel’s Big Chip-Making Push in Germany Hits Bottleneck

livemint.com:

MAGDEBURG, Germany—Intel says it needs 3,000 people to staff the semiconductor factory it plans to build in eastern Germany by the end of the decade. This year, the local apprentice program for chip-making technicians is training two. The German government trumpeted Intel’s planned development as a game changer, backed by federal subsidies totaling 10 billion euros—equivalent to $10.59 billion—that would help the economy pivot toward new industry.

The outlay is part of a European Union effort unveiled this summer to double the Continent’s share of global chip production to compete with established producers in Asia. On the ground, however, this and similar projects face hurdles such as a shortage of skilled workers and an at-times Byzantine bureaucracy. High energy prices are one of the reasons Germany’s economy has stagnated since the end of last year and is expected to shrink this year.

The issues raise questions about Europe’s capacity to match the Biden administration’s manufacturing incentives offered through the Inflation Reduction Act and the $53 billion Chips Act. For Germany, which derives a bigger part of its gross domestic product from manufacturing than other countries on the Continent, expanding semiconductor production is essential to catching up technologically and increasing economic resilience. To staff its factory in Magdeburg, Intel intends to send local trainees to a factory it operates in Ireland for the final year of their three-year apprenticeship program.