FRANKFURT-ODER, Germany -- Plans for a 1.3 billion euro (about US$1.5 billion) silicon germanium foundry in Frankfurt-Oder, Germany, in the eastern German state of Brandenburg are just hours away from collapse as reports come from Germany that money to continue construction is unlikely to be forthcoming.
Communicant Semiconductor Technologies AG was backed by the Arab Emirate of Dubai, the state of Brandenburg, the federal government of Germany and received a baseline CMOS process from Intel Corp. on to which it planned to apply its silicon germanium know-how.
A few weeks ago spokesman for the company said there was concern that the regional government of Brandenburg and the federal government of Germany were changing their positions on guaranteeing loans, but that he was hopeful of positive news in a week or two (see October 27 story).
According to a Reuters report Germany's federal government had asked investors, including Intel, the Emirate of Dubai and the Brandenburg regional government to inject more cash as part of its terms for providing an investment guarantee.
"As far as we can see the project is on the brink of collapse," Reuters quoted the Brandenburg economy minister Ulrich Junghanns as saying at a news conference in Potsdam. "The demands of the federal government are simply too high. Therefore I can no longer foresee that the project can continue," the account also attributes to Junghanns.
One company not troubled by tightening budgets at the German federal government is U.S. chipmaker Advanced Micro Devices Inc. which opted to build a $2.4 billion wafer fab in the neighboring state of Saxony, aided by some $1.5 billion of government backed aid.
A german language version of the story was available here at our sister site www.eetimes.de.