Billion-euro project: Chip factory planned near Magdeburg

A new chip factory is planned near Magdeburg (Saxony-Anhalt) for the production of memory chips for European industry. The aim of the project is to build up European production capacities and reduce dependence on foreign countries, announced the Dresden-based company FMC. "With our project, we want to strengthen European technological sovereignty and resilience in system-critical memory chips," said Managing Director Thomas Rückes. The next step is to sign a letter of intent with the state of Saxony-Anhalt.

It is a project worth billions, Saxony-Anhalt's Economics Minister Sven Schulze (CDU) told the German Press Agency. After Intel withdrew, the talks with FMC were an important plan B. Last year, US chip manufacturer Intel announced that it was putting its original plans to build several chip factories in Magdeburg on hold for the time being. Around 30 billion euros were to be invested at the site in Saxony-Anhalt.

Economics Minister: "Intel is not off the table"

"Intel is not off the table," emphasized Schulze. Other companies are to settle in the large high-tech park planned near Magdeburg. While Intel has purchased an area of 400 hectares, the FMC project involves around 100 hectares. "It is now important that the financing is clarified," said Saxony-Anhalt's Minister of Economic Affairs. Together with the company, talks are now planned with the federal government and the EU for possible financing.

FMC (Ferroelectric Memory Company) was founded in 2016 and emerged from the TU Dresden environment. According to the company, it has developed memory cells that have extremely low power consumption and therefore reduce the energy requirements of AI data centers. FMC is backed by companies including Bosch, Air Liquide, Merck and other international investors. According to a company spokesperson, this would be FMC's first chip factory in Germany. The chips are currently produced in other factories.